Apple is weighing deeper ties with Google even as questions mount over demand for its in-house AI tools.
The Information Apple correspondent Aaron Tilley says the company signed a deal earlier this year to use Google’s Gemini model to power an upgraded Siri.
According to Tilley, the deal could now extend beyond models and into broader cloud infrastructure.
“In January, they signed this Gemini deal to use Google’s AI model to power upgraded Siri. A part of that is also a broader sort of cloud arrangement, where Apple is now exploring various ways to use more of Google’s cloud, and that most importantly includes its AI products.
To date, since the launch of their sort of revamped AI strategy, they’ve said that they’re going to be either using Apple devices to process this AI compute, or private cloud compute, which is sort of an internal AI service. But there’s been discussions with Google to move that on to Google Cloud, which is via increased reliance on an external partner for a very important future product for Apple and that’s interesting.”
The Information also cites former employees who said only 10% of Apple’s cloud compute capacity is being used on average.
Tilley links the figure to weak consumer response.
“I think that reflects just how unpopular Apple’s new AI products have been. The whole Apple Intelligence system that they announced in 2024, it’s been pretty lackluster. The features and the use are just not great. And I think that reflects kind of the poor use of the product and how poorly received it’s been by the public and critics.”
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