Google Cloud CEO Thomas Kurian said at Cloud Next 2026 that Google is working with Apple on the next generation of Apple Foundation Models, with Gemini serving as the technical base for a “more personalized Siri.” Based on the disclosed timeline, the rollout is expected later in 2026, with a broader launch tied to iOS 27.
Cloud Next confirmation puts the Apple-Google deal in the open
During his keynote, Kurian described Google as Apple’s “preferred cloud provider.” The collaboration is focused on shrinking a large Gemini model into a smaller version that can run directly on the iPhone. According to the source material, the agreement was signed in January 2026, early progress in knowledge distillation was reached in March, and the project was presented publicly at Cloud Next this week. Apple is expected to show the feature for the first time at WWDC 2026 on June 8, followed by a release in September with iOS 27.
Knowledge distillation moves AI processing onto the device
The central technology in the partnership is knowledge distillation, a method used to compress a large Gemini model into a lighter version suitable for on-device inference. That would allow Siri-related AI processing to run locally on the iPhone instead of depending entirely on cloud computing. Privacy remains a hard boundary in the arrangement. The source says Apple will maintain control over user data throughout the process, while Google’s access will be limited under the privacy framework negotiated between the two companies.
A reversal in payment flow stands out
The deal also marks a notable shift in how money moves between the two companies. For more than a decade, Google reportedly paid Apple about $20 billion a year to remain the default search engine on the iPhone. In this case, according to the report, Google is providing the technology and is said to be paying Apple $1 billion annually for a place inside the Siri experience. The direction of payment has flipped, and Google’s position is changing from buying distribution to supplying AI model capability.