OpenAI Declines Apple Siri Deal: Apple Signs Multi-Billion Agreement with Google Gemini Instead

OpenAI declined the Apple Siri deal, according to a Financial Times report. The ChatGPT maker made “a conscious decision” not to become Apple’s custom AI provider. Apple then turned to Google, signing a multi-billion dollar agreement to power Siri with Gemini instead.

Yes, you read that right. Apple is paying Google billions to make Siri smarter.

What We Know About the Apple Gemini Deal

Apple signed a multi-year, roughly $1 billion per year contract with Google to build a custom Gemini model that runs on Apple’s Private Cloud Compute servers to power Siri.

The partnership announced this week includes the following.

• Multi-year contract worth several billion dollars total
• ~$1 billion annually according to sources
• Custom Gemini model trained specifically for Apple
• Privacy-first deployment on Apple’s Private Cloud Compute servers

Apple reportedly tested models from Anthropic (Claude), OpenAI (ChatGPT), and Google (Gemini) starting last summer. Google won based on performance benchmarks, infrastructure reliability, and the ability to run securely on Apple’s own servers.

Watch: Apple’s Gemini Deal Explained

Why OpenAI Walked Away

OpenAI chose to focus on building its own consumer hardware with former Apple designer Jony Ive rather than becoming a backend AI provider for Siri.

OpenAI didn’t lose this deal. They chose not to pursue it.

According to the Financial Times, OpenAI decided in autumn 2025 to focus on building its own hardware instead of becoming Apple’s AI backend. That mysterious device, reportedly designed with Jony Ive, appears to be OpenAI’s priority.

The logic makes sense. Why power someone else’s assistant when you’re building your own?

What Happens to ChatGPT on iPhone?

ChatGPT stays on iPhone for now. Apple’s existing Siri-to-ChatGPT integration for complex queries continues alongside the new Gemini-powered Siri core.

Apple currently integrates ChatGPT into Siri for complex queries that need deeper knowledge. Apple told CNBC that arrangement isn’t changing for now.

So for the moment, iPhone users get both. ChatGPT for certain queries, Gemini powering Siri’s core intelligence. How long that lasts is anyone’s guess. If you want to understand how these AI assistants fit into your daily life, that’s a good place to start.

My Take

This deal reshapes the AI assistant race. Apple, Google, and OpenAI are all making billion-dollar bets on different strategies, and someone is going to be wrong.

I’m surprised Apple went this direction.

Google is a direct competitor. They make Android. They make Pixel phones. They’ve spent years trying to eat into Apple’s market share. And now Apple is writing them billion-dollar checks to make Siri competitive?

With a deal this size, Apple must have had compelling reasons. Maybe Gemini 2.0’s benchmarks were significantly better. Maybe Google offered infrastructure guarantees that OpenAI couldn’t match. Maybe the Jony Ive hardware project spooked Apple into looking elsewhere.

Whatever the reasoning, this feels like that moment from Dodgeball…….

Apple is betting that making Siri smarter matters more than who provides the intelligence. Google is betting that being inside every iPhone is worth more than the competitive awkwardness. OpenAI is betting their own hardware play will be bigger than any Apple partnership.

Everyone’s making big bets. Someone’s going to be wrong. You can follow all the latest AI news here as this story develops.

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