During a recent earnings call, Apple CEO Tim Cook shed some light on the company's collaboration with Google, specifically regarding the integration of Google's Gemini AI models into the next generation of Siri. I think it's pretty interesting how they're approaching this. Instead of completely building everything themselves, they're leveraging Google's expertise to enhance Siri's capabilities.

Cook explained that Google's AI tech was chosen because it offered the "most capable foundation" for Apple's Foundation Models (AFM). This partnership, according to Cook, will enable Apple to "unlock a lot of experiences and innovate." What's really important here is that Apple emphasizes they'll continue to operate on-device and in Private Cloud Compute, maintaining their strict privacy standards. It's reassuring to know that even with Google's AI involved, Apple is committed to protecting user data.

While the exact financial details of the arrangement with Google remain under wraps, Cook made it clear that this is a collaboration, not a takeover. Apple will continue to develop its own AI technologies independently, but the personalized version of Siri will be powered by Google's Gemini.

When pressed about how Apple plans to make money from Apple Intelligence, Cook framed it as a feature integrated across Apple's ecosystem. It's not about creating a standalone revenue stream, but rather enhancing the overall user experience, which in turn drives value across Apple's products and services. I think this is a smart long-term strategy. It's about making the whole Apple experience more compelling, not just about making a quick buck.

It’s important to note that Apple Intelligence is exclusive to devices with enough processing power. While Cook didn't reveal user numbers or whether the AI features are boosting device upgrades, it's clear that this technology is a key part of Apple's future strategy.