In 2024, Apple introduced Apple Intelligence as its contender in the rapidly evolving generative AI landscape, positioning it against rivals such as OpenAI’s ChatGPT, Microsoft’s Copilot, and Google’s Gemini.
However, the company failed to deliver its promise, prompting users to troll its AI strategy as vaporware, as it has only shipped trivial features like Writing Tools and Image Playground. Consequently, the tech giant was dragged to court for allegedly using “false” Apple Intelligence ads to drive iPhone 16 sales.
After careful evaluation, Apple determined that Google’s AI technology provides the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will unlock for Apple users. Apple Intelligence will continue to run on Apple devices and Private Cloud Compute, while maintaining Apple’s industry-leading privacy standards.
Apple
As such, Apple’s foundational models will be based on Google’s Gemini models and cloud technology. This news doesn’t come as a surprise, as Bloomberg’s Mark Gurman reported that Apple and Google were already in early discussions about the deal in August 2025, further suggesting that Apple would have to pay $1 billion a year to power its models with Google’s AI.
But Apple’s new AI deal affirms Google’s dominance in the AI space and mobile, overshadowing OpenAI’s ChatGPT and Microsoft Copilot‘s chances to have their day in the sun.
In 2019, Microsoft co-founder Bill Gates admitted that his greatest mistake during his tenure as CEO was losing the mobile space to Android, which cost the company $400 billion. Google seized the opportunity and now owns Android, making it easy to integrate its advanced AI capabilities across its wide user base.
It’s evident that Microsoft is facing a difficult time driving engagement and users to its Copilot offering. This is despite the fact that the AI tool is based on the same technology as ChatGPT.
The software giant is seemingly doubling down on its AI efforts, with plans to evolve its Windows operating system into an agentic OS. The move has been received with backlash, suggesting that users aren’t particularly excited about the idea, potentially due to the privacy and security issues riddling the technology.
It remains to be seen how Microsoft plans to drive more interest and engagement in Copilot; perhaps its chances might have been a tad better if Microsoft CEO Satya Nadella’s strategic mistake of pulling the plug on Windows Phone. But I guess we’ll never know…
The new deal also raises concerns about Apple’s partnership with OpenAI. In 2024, the iPhone maker announced that it was integrating ChatGPT into SIri to handle complex queries. .
Will Microsoft be able to catch a break in the mobile landscape with Copilot after Apple just partnered with Google to power its AI efforts? Share your thoughts in the comments and cast your vote in the poll!
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