How Apple Will Pay Google $1B for AI Without Sharing User Data

Apple has solved its AI dilemma with a $1 billion-a-year check to Google and a “walled-off” privacy architecture. The company will use Google’s 1.2 trillion parameter Gemini model for its new Siri but will host the AI on its own Private Cloud Compute servers.
This setup is the core of the deal. It allows Apple to use Google’s “ultrapowerful” AI—which beat OpenAI and Anthropic in a “bake-off”—without compromising its non-negotiable privacy stance. Google gets its $1B, but no user data.
This “interim solution” is part of Apple’s “Glenwood” project to fix Siri. The new “Linwood” Siri, due in the spring, will be a hybrid. Apple’s 150-billion parameter models will handle simple tasks, while Google’s AI will tackle complex “summariser” and “planner” functions.
The partnership is a reluctant admission of Apple’s AI lag, overseen by executives Craig Federighi and Mike Rockwell. It’s also a huge win for Google’s “AI supplier” business.
While Apple is pushing its teams to build a 1T+ model to replace Gemini, this “temporary” fix could last for years. Catching Google’s rapidly advancing AI is an immense challenge, even for Apple.