Even as Apple finalizes a $1 billion annual deal to use Google’s 1.2 trillion parameter Gemini AI for its global Siri overhaul, its strategy for China remains completely separate. Due to China’s long-standing ban on Google services, the localized version of the new Siri will not rely on Gemini. Instead, Apple will use its in-house models combined with a filter developed by Alibaba Group, and it is also reportedly eyeing a partnership with Baidu for its AI offerings in the country.
This two-pronged approach highlights the geopolitical complexities of the AI race. In most of the world, Apple is leaning on Google’s “ultrapowerful” model as an “interim solution” to fix Siri. This deal, part of the “Glenwood” project, will power the new “Linwood” assistant’s “summariser” and “planner” functions, providing a massive leap in capability from Apple’s 150-billion parameter models. This new Siri is on track for a spring release.
The global deal with Google was struck after Apple tested offerings from OpenAI and Anthropic, deeming Gemini the best short-term fix. However, even with this partnership, Apple is enforcing strict privacy rules. The Gemini model will run on Apple’s Private Cloud Compute servers, creating a “walled-off” environment where Google has no access to user data. This allows Apple to use its rival’s AI without compromising its privacy stance.
In China, Apple must navigate a completely different landscape. The localized version of Apple Intelligence will use a filter from Alibaba to adjust content in line with Chinese government requirements. This reliance on local partners like Alibaba and potentially Baidu is a necessary concession to operate in the heavily regulated Chinese market, further complicating Apple’s global AI rollout.
While Apple’s global strategy relies temporarily on Google, its long-term goal remains AI independence. The company is developing its own 1 trillion parameter model to eventually replace Gemini worldwide. However, catching Google’s top-performing AI is a massive challenge, meaning this $1 billion-a-year deal could last, even as Apple pursues a completely different, non-Google path in one of its most important markets.
Apple’s China AI Strategy Excludes Google Amid $1B Gemini Deal
