Have you ever felt like you were watching two giant corporations play a high-stakes game of tag where neither one actually wants to admit they are "it"?
It is honestly one of the most "confusing" things in tech right now. You would think that when two of the biggest companies on the planet—Apple and Google—decide to team up on something as big as the "next generation" of Siri. They would be shouting the details from the rooftops. But instead, we are getting this weird, "predictable" corporate dance where everyone is using big words to say absolutely nothing. During Alphabet’s Q4 2025 earnings call. CEO Sundar Pichai added to the confusion regarding where. exactly. The upcoming Gemini-powered Siri will run. Here’s what he said.
The Backstory of the Siri-Gemini Collaboration
Look. We all know the deal. Since Apple confirmed that Google’s Gemini would power new Siri features. There has been a lingering question about the privacy aspects of what Tim Cook refers to as a "collaboration" between the two companies. While many assumed that Google would have access to user data. Apple vaguely countered this notion with its usual privacy-first speech.
Apple’s original statement on the collaboration was pretty standard. "After careful evaluation. We determined that Google’s technology provides the most capable foundation for Apple Foundation Models, and we’re excited about the innovative new experiences it will unlock for our users." Currently. Apple’s foundation models run either on-device or on Private Cloud Compute (PCC). which is Apple’s fancy cloud AI infrastructure designed to keep things private. But then Bloomberg dropped a bomb, saying that might not be the case for Gemini. They reported that the two partners are discussing hosting the chatbot directly on Google servers running powerful chips known as TPUs, or tensor processing units.
The Confusion in the Earnings Calls
Fast forward to the recent earnings calls. Tim Cook was asked by an analyst about the "opportunity to share in revenue" and how they decided to partner with Google. Cook basically repeated the line about Google being the "most capable foundation," but then he said something interesting. "We’ll continue to run on the device. and run in Private Cloud Compute. and maintain our industry-leading privacy standards in doing so." He didn't mention Google's servers.
But then. Sundar Pichai spoke up. During Alphabet’s Q4 2025 earnings call. He said. "We are collaborating with Apple as their preferred cloud provider to develop the next generation of Apple Foundation Models. based on Gemini technology." A few moments later. Chief Business Officer Philipp Schindler said the exact same thing. This is where the "explosion" of theories starts. If Google is the "preferred cloud provider" for these models. Then Tim Cook’s talk about Private Cloud Compute might just be a distraction. It is looking more and more like the Gemini-powered Siri will live on Google’s hardware. despite Apple's refusal to confirm it.
The Economics of the AI Infrastructure War
When you think about this from a perspective of global economics. It starts to make a lot more sense. Building AI servers is incredibly expensive. We are talking about billions of dollars in foreign investment and massive supply chains for high-end chips.
Why Infrastructure Matters for International Trade
In the current climate of international trade. Having control over your own servers is a matter of national and corporate security. When Apple uses Google's servers. They are essentially outsourcing their most sensitive "brain" power to a competitor. But from a "macroeconomics" standpoint. Apple might not have a choice. The "economic growth" of AI is happening so fast that even a company with Apple's bank account might struggle to build out its own PCC fast enough to handle the sheer volume of Gemini requests.
The TPU Factor: Google’s Tensor Processing Units are specialized for AI. If Apple tries to run Gemini on their own Mac-based chips. The "economic repercussions" in terms of power usage and speed might be too high.
Supply Chain Struggles: We are currently seeing major "geopolitical tensions" surrounding the production of high-end AI chips. Economic sanctions on certain regions have made it harder for companies to get the silicon they need. By partnering with Google. Apple bypasses some of these supply chain headaches because Google already has the hardware ready to go.
Geopolitical Tensions and Data Sovereignty
This isn't just a tech story; it is a story about international politics. Where your data sits geographically can trigger all sorts of legal and political issues. If the Gemini-powered Siri runs on Google servers. Where are those servers located? If they are in regions subject to different privacy laws. Apple’s "privacy-first" branding could take a massive hit.
The Impact of Global Conflicts
We are living in an era where international conflicts can disrupt digital services overnight. If a data center in a specific region is taken offline due to local instability. Siri goes down. This is why "growth" in the cloud sector is so focused on redundancy. However. The more redundant your system is. The more it costs. and the more it impacts your "hardware profitability."
Economic sanctions also play a huge role here. If Google is banned from providing services in certain markets where Apple is still active. How does Siri function? It is a "confusing" mess of red tape and tech specs that neither company wants to talk about publicly.
Comparison: Apple PCC vs. Google TPU Cloud
| Feature | Apple Private Cloud Compute (PCC) | Google Cloud (TPUs) |
| Primary Goal | User Privacy & Security | Raw Processing Power & Speed |
| Hardware | Custom Apple Silicon (High-end Mac chips) | Google Tensor Processing Units (TPUs) |
| Data Access | End-to-end encryption (Apple claims no access) | Preferred Cloud Provider status (Data access unclear) |
| Economics | High internal cost for Apple | Shared revenue or service fee for Google |
| Scalability | Limited by Apple’s current server build-out | Massive global scale |
The Labor Market and the AI Talent Drain
Another piece of the puzzle is the labor market. The best AI engineers are currently flocking to wherever the biggest models are being built. By partnering with Google. Apple is essentially admitting that they need Google’s "technology" and the people who build it to keep Siri relevant.
Economic Growth through Collaboration
While some might see this as a sign of weakness. It is actually a smart move for economic growth. Instead of spending ten years trying to catch up. Apple is using a "collaboration" to stay in the race. But this has "economic repercussions" for Apple's internal teams. If you are a top-tier engineer at Apple working on AI, and you find out the "next generation" is actually just a Google skin. You might take your talents elsewhere. potentially to a startup funded by foreign investment.
Main Points: What we know so far
Preferred Cloud Provider: Google executives explicitly stated they are Apple’s "preferred cloud provider" for the next generation of foundation models.
Privacy Confusion: Apple still insists everything runs on their own PCC or on-device. But this seems to conflict with Google’s statements.
The "Next Generation" Distinction: It appears that current Apple Intelligence features run on Apple hardware. But the "Gemini-powered Siri" will be a separate beast running on Google’s infrastructure.
Revenue Sharing: Neither company will talk about the money. But you can bet there are massive "international trade" implications for how these services are taxed and billed across borders.
Hardware Limitations: Apple’s PCC might not be powerful enough yet to handle the "explosive" demand of a full LLM like Gemini without help from Google’s TPUs.
Frequently Asked Questions (FAQ)
Is Gemini-powered Siri going to be less private?
That is the billion-dollar question. Apple says they maintain their standards. But if the data is being processed on Google's servers. There is a technical path for Google to see that data unless the encryption is handled perfectly.
Why wouldn't Apple just build its own AI from scratch?
They are. But they are behind. In the world of macroeconomics. Being late to market is often more expensive than paying a competitor for a "preferred cloud provider" deal. They need to show "growth" now. not in five years.
What are TPUs and why do they matter?
TPUs (Tensor Processing Units) are chips that Google designed specifically for machine learning. They are much faster and more efficient at running AI than the general-purpose chips Apple uses in its servers.
How do economic sanctions affect this deal?
If the US government places more economic sanctions on AI technology exports. It could limit where Google can host these services. which would then limit where Apple can sell a "Gemini-powered" iPhone.
Will this cost extra for users?
Apple hasn't said. But the "economics" of running these massive models suggest that a subscription might eventually be needed to cover the "preferred cloud provider" fees.
Conclusion: A Tense but Predictable Future
In the end. It is "predictable" that Apple would go this route. They have a history of using Google for things they don't want to build themselves—like search. But with AI, the stakes are much higher. The "confusion" we are seeing in these earnings calls is just a symptom of a much larger struggle for tech dominance in a world filled with geopolitical tensions and complex supply chains.
Whether the Gemini-powered Siri runs on a Mac chip in an Apple data center or a TPU in a Google warehouse might not matter to the average person. but for the "economics" of the tech industry. It changes everything. It is a massive shift in "international trade" dynamics between the two giants. and it is something we will be watching closely as the transition unfolds over the next few years.
"Contact us via the web." If you have thoughts on where your data should actually live. We would love to hear if you trust the Apple-Google "collaboration" or if this whole thing feels like a privacy "explosion" waiting to happen.
Source Links
Alphabet Q4 2025 Earnings Call Transcript - Alphabet Investor Relations Bloomberg report on Apple-Google AI servers - Bloomberg Technology Apple’s Private Cloud Compute Security Guide - Apple Support
Libellés:
Apple Intelligence, Gemini-powered Siri, Sundar Pichai, Tim Cook, Alphabet Earnings, international conflicts, geopolitical tensions, economics, economic impact, international politics, economic repercussions, labor market, international trade, economic sanctions, macroeconomics, microeconomics, economic growth, foreign investment, supply chains, growth.
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