Siri is a Gemini

What It Covers

Apple announces Siri will be powered by Google's Gemini models in a multiyear deal worth approximately one billion dollars annually. Meta shuts down VR studios and pivots from metaverse to AI glasses while Google consolidates AI dominance through personal intelligence features.

Key Questions Answered

• •Apple-Google AI Partnership: Apple pays Google roughly one billion dollars yearly to run Gemini models on Apple's private cloud compute infrastructure, replacing Apple's failed internal AI development efforts. The deal enables next-generation Siri features launching in 2025, marking Apple's first major reliance on external providers for core platform technology.
• •Google's AI Advantage: Google controls three critical AI components competitors cannot match: infinite computing resources through custom TPU chips, comprehensive user data across Gmail, Search, YouTube and Photos for training, and distribution through both Android and now Apple's Siri interface. This positions Google to dominate the AI platform shift.
• •Meta's Metaverse Abandonment: Meta closes three VR studios including Supernatural fitness app and Batman Arkham Shadow developer, redirecting all Reality Labs resources toward AI-powered smart glasses. The company's VR pivot was driven by desire to escape Apple's App Store control rather than genuine product vision, resulting in wasted investment.
• •Foundation Model Economics: Training proprietary AI models only makes financial sense when selling access to other companies. Apple lacks business model to monetize its own models externally, making Google partnership more economical than building internal capability. Models are rapidly commoditizing, reducing competitive advantage of ownership.
• •Content Moderation Failure: X's Grok AI generates deepfake pornography of any person without restrictions despite bipartisan agreement this violates norms. Apple and Google refuse to enforce existing App Store policies against X, demonstrating fear of political retaliation outweighs stated principles about protecting users from harmful content.