“By outsourcing the foundational layer of its AI to Google, Apple is effectively admitting that its internal efforts couldn’t compete with Google’s Gemini in terms of capability and scale in the short term,” IDC analyst Francisco Jeronimo said.
He told the BBC while the move was “a significant and pragmatic strategy” for Apple, it also marked a departure from its historic approach to development.
“Apple always preferred to own every layer of its technology,” he said, adding that doing so “gave them an edge against their competitors”.
Nonetheless he and other analysts say the deal is likely to be welcomed by consumers, noting demand among many iPhone users for AI features as Google, Samsung and other smartphone manufacturers continue to bring these to their handsets.
Tech analyst Paolo Pescatore said Apple’s latest financial results suggested AI was not the most sought-after feature for people deciding whether to buy an iPhone.
But he told the BBC “this will gradually change as AI-powered services gain adoption”.
This is not the first deal Apple has struck with an AI firm.
It unveiled a similar partnership with ChatGPT-maker OpenAI in June 2024, which made the popular chatbot available as part of its suite of generative AI tools, Apple Intelligence.
Google and Apple said in a joint statement, external on Monday that Apple Intelligence would continue to operate in Apple’s Private Cloud Compute system.
“After careful evaluation, Apple determined that Google’s Al technology provides the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will unlock for Apple users,” they said.
“Apple Intelligence will continue to run on Apple devices and Private Cloud Compute, while maintaining Apple’s industry-leading privacy standards.”