Galaxy AI has forced Apple to spend $1 billion a year to fight back

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Samsung scored a win in the race for mobile AI with Galaxy AI. This company's suite of artificial intelligence features, backed by its partnership with Google that brought powerful Gemini features to Galaxy devices, has given it a leg up on Apple Intelligence which has stumbled out the gate in comparison.



Apple is reportedly preparing to fight back, and the company may have made peace with spending $1 billion a year to do so.



Google will help make Siri better with its AI model



Bloomberg is reporting that Apple is nearing a deal with Google to use a custom model of Gemini AI for Apple Intelligence. Apple's current AI model reportedly has 150 billion parameters while Google's Gemini is vastly superior with 1.2 trillion.



Google would obviously not be helping Apple out of the goodness of its heart. The report mentions that Apple will pay Google nearly $1 billion a year for this custom version. This isn't going to sting Apple too much, since Google pays Apple much more than $1 billion a year to remain the default search engine on Safari browsers.



Google appears to be making one significant concession to Apple. While it will supply the model, Apple will run it on its own Private Cloud Compute servers. This will be vital for Apple to ensure that the privacy narrative it has built remains intact. This custom Gemini model will power the improved Siri that's expected to be released in spring 2026.



How that changes things for Samsung remains to be seen. Instead of using Google's models to power Bixby, it went the other way, effectively integrating Gemini on its devices while also giving Google branding exposure through the platform.



Perhaps Samsung might consider making a somewhat similar deal if it sees that Apple's AI becomes a whole lot better than its Galaxy AI offerings.


The post Galaxy AI has forced Apple to spend $1 billion a year to fight back appeared first on SamMobile.



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