The agreement, according to Bloomberg, would be one of Apple’s biggest collaborations with an external technology partner in years.

For now, Apple plans to rely on Google’s large-scale model, which has 1.2 trillion parameters, to strengthen Siri’s processing power and decision-making. 

That’s nearly eight times more advanced than Apple’s current 150 billion-parameter cloud model. The company sees the deal as a temporary measure while it works to bring its own artificial intelligence system up to par.

Apple tested several models, including OpenAI’s ChatGPT and Anthropic’s Claude, before selecting Google’s Gemini earlier this year. Those close to the project said Apple concluded that Gemini offered the best blend of speed, reliability, and contextual understanding.

The revamped Siri, codenamed Linwood, is expected to launch next spring as part of iOS 26.4. The project, known internally as Glenwood, is being overseen by Mike Rockwell, the executive behind the Vision Pro headset, and software engineering chief Craig Federighi.

Under the terms being finalised, Google’s Gemini model will manage Siri’s “summariser” and “planner” functions, which help the assistant interpret user intent and coordinate complex actions. 

However, Apple’s own models will still handle several on-device tasks. To protect user data, Gemini will operate within Apple’s Private Cloud Compute servers rather than Google’s infrastructure.

Neither company has commented publicly on the partnership. Unlike the Safari search deal, Apple is expected to keep Google’s role behind the scenes, branding Siri’s improvements under its own ecosystem rather than sharing credit.

The collaboration is a rare moment of pragmatism from Apple, which has long avoided outsourcing key software capabilities. But as competitors like OpenAI, Microsoft, and Google grow quickly, Apple appears more willing to depend on outside systems, at least for now, to maintain competitiveness.

Despite leaning on Google, Apple has not abandoned its vision to build proprietary AI tools. The company’s in-house models team is reportedly developing a trillion-parameter cloud model, aiming to match Gemini’s quality by next year. Executives say they can phase out the Google technology in due course.

Globally, Apple is also preparing a version of the new Siri for the Chinese market, where Google services are banned. The Chinese variant is expected to run entirely on Apple’s own models with a compliance layer from Alibaba Group, tailored to meet local regulatory demands.

Shares of both companies briefly rose after reports of the talks surfaced, Apple gaining less than 1% to $271.70, and Alphabet rising as much as 3.2% to $286.42.

This expands British AI infrastructure, and drives collaboration on security research.

Technology Secretary Peter Kyle said, “AI will be fundamental in driving the change we need to see across the country – whether that’s in fixing the NHS, breaking down barriers to opportunity or driving economic growth. This can’t be achieved without companies like OpenAI, who are driving this revolution forward internationally. This partnership will see more of their work taking place in the UK.”

Central to the partnership is the government’s £1 billion investment plan aimed at scaling Britain’s public compute capacity twenty-fold over the next five years. This infrastructure growth is expected to support the development of sovereign AI technologies and national data centres, essential to the UK’s vision of AI self-sufficiency.

OpenAI, whose London office has grown to over 100 researchers and engineers since opening in 2023, is expected to expand its presence in the country further. According to the company, Britain ranks among its top three global markets for paid subscribers and API developers. 

Sam Altman, OpenAI’s CEO, described AI as “a core technology for nation building that will transform economies and deliver growth.” He added, “Britain has a strong legacy of scientific leadership and its Government was one of the first to recognise the potential of AI through its AI Opportunities Action Plan. Now, it’s time to deliver on the plan’s goals by turning ambition to action and delivering prosperity for all.”

The AI Opportunities Action Plan, launched in January 2025, includes 50 recommendations aimed at transforming the UK’s technological sector.

Key areas of focus include developing sovereign AI infrastructure like data centres and compute clusters, transforming public services in healthcare, justice, and education, and creating regional AI Growth Zones in Scotland and Wales. These zones are expected to drive innovation, create jobs, and attract private investment.

OpenAI’s technologies are already embedded in various UK government tools. Its GPT-powered chatbot helps small businesses navigate regulatory frameworks on GOV.UK, while ‘Humphrey’, Whitehall’s internal AI assistant, accelerates administrative tasks.

Another tool, ‘Consult’, leverages AI to sort public consultation responses in minutes, a process that typically takes civil servants weeks.

Beyond public services, the partnership will explore AI applications in areas like justice (automating legal triage and appeals), defence (cyber intelligence and threat detection), and education (developing personalised AI tutors for STEM subjects).

Discussions also include expanding OpenAI’s work with the UK’s AI Security Institute to develop advanced security research collaborations and a new technical information-sharing programme.

The Labour Government, facing sluggish economic growth and high political pressure, sees AI as an essential driver for reversing its economic fortunes. Officials estimate that AI adoption could lift UK productivity by 1.5% annually, injecting an additional £47 billion into the economy every year over the next decade.

OpenAI’s expansion is expected to generate high-paying tech jobs and attract billions in foreign investment, enhancing the UK’s competitive edge in AI.

With the United States, China, and India advancing rapidly, British policymakers believe that securing partnerships with AI leaders like OpenAI is important to safeguarding national interests and economic growth.

At the centre of the talks is how much equity Microsoft will retain after pumping over $13 billion into the company.

According to reports, Microsoft is ready to give up a portion of its stake in exchange for something more valuable, ongoing access to OpenAI’s future AI models beyond the current 2030 agreement. This shows a change in priorities. Microsoft appears to want long-term technological leverage rather than a dominant equity position.

The Financial Times, quoting people familiar with the matter, notes that the original 2019 contract that kicked off Microsoft’s involvement is being reworked entirely. Back then, the software giant had put in $1 billion, laying the foundation for what became a major player in global AI development. 

Now, OpenAI is on the brink of a more aggressive commercial path, but with a twist—it still wants to preserve control under its nonprofit board, even as it converts its business arm into a public benefit corporation (PBC).

That’s a sticking point.

Microsoft reportedly needs to sign off on the restructuring, and sources say it’s not an easy sell. The deal has been made harder by growing friction between the two companies. What began as a strategic alliance is now more of a competitive coexistence.

OpenAI’s enterprise goals are expanding. Its massive Stargate AI infrastructure project, planned in partnership with SoftBank and Oracle and valued at up to $500 billion, is one example that seems to be pushing Microsoft into a more defensive posture.

Some within Microsoft are not hiding their displeasure. “Arrogant” is the word reportedly used to describe OpenAI’s recent conduct. That issue is being aggravated by regulatory oversight. Authorities in California and Delaware are watching the restructuring closely, and investor demands are increasing.

Just last week, The Information revealed that OpenAI told some investors it would be cutting back on how much of its revenue it shares with Microsoft as part of the restructuring. That adjustment appears to favour future returns to new investors over existing ones, putting Microsoft, once its largest backer, in a more uncertain position.

Both firms have refused to comment publicly on the negotiations. Silence, however, isn’t unusual at this stage, especially when valuations are in play and IPO ambitions in the background.

In January, Microsoft had already started changing direction. It revised some of its OpenAI deal terms shortly after entering a separate venture with Oracle and SoftBank to build next-generation AI data centres in the U.S. That was seen by analysts as a sign that Microsoft was preparing for a less central role in OpenAI’s future ecosystem.

Now, OpenAI is pressured on all sides. It raised $40 billion in new capital from backers like SoftBank, is under increased regulatory investigation, and still has to navigate Elon Musk’s objection of its drift towards commercialisation.

OpenAI wants to keep its nonprofit DNA intact. Microsoft wants reliable access to top-tier AI models.