In this newsletter:

• Apple to pay Google $1 billion annually for Gemini to power Siri overhaul
• Perplexity pays Snap $400 million to power AI search in Snapchat
• Google Maps replaces Assistant with Gemini for conversational navigation

Plus, you’ll find new AI tools and this week’s top AI news headlines!

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🤖 Apple to Pay Google $1 Billion Annually for Gemini to Power Siri Overhaul

Apple finalized a deal with Google to use a custom 1.2 trillion parameter Gemini model for Siri's revamp, paying approximately $1 billion per year while the model runs on Apple's Private Cloud Compute servers without external data sharing.

What's new:

• Gemini handles Siri's summarizer and planner functions for multi-step tasks
• Custom model runs on Apple servers, preserving privacy without Google data access
• New Siri answers complex queries and completes app tasks without web fallbacks
• Apple models still power some Siri features alongside Gemini
• Launch targeted for spring 2026 with iOS 26.4 and a new smart home display
• Apple chose Gemini over OpenAI and Anthropic after evaluating costs

The strategy:

• Apple won't publicly disclose the Gemini partnership, marketing it as Apple technology
• The company is developing a 1 trillion parameter in-house model for the 2026 replacement
• Deal mirrors Apple's pattern with Maps, Weather, and Intel as temporary solutions
• Existing $20 billion annual Google search partnership continues separately

Why it matters:

While Apple promised an AI-powered Siri with iOS 18 over a year ago, architectural deficiencies forced a complete rebuild that the company couldn't deliver with in-house models.

The Gemini partnership positions Apple to finally ship competitive voice assistant features in 2026, but outsourcing Siri's intelligence to a rival raises questions about Apple's AI capabilities and whether users will trust privacy claims when third-party models process requests even on Apple servers. The move signals Apple's AI development lags further behind than publicly acknowledged.

👀 Read about Apple's Gemini deal!

🔍 Perplexity Pays Snap $400M to Power AI Search in Snapchat's My AI Chatbot

Snap signed a deal integrating Perplexity's AI search engine into Snapchat's My AI chatbot, with Perplexity paying $400 million in cash and equity for access to 940 million users starting early 2026.

What's new:

• Perplexity's AI search engine integrates directly into Snapchat's My AI chatbot
• Users get AI-powered answers when asking questions through My AI
• Feature launches early 2026, with revenue recording starting then
• Deal gives Perplexity access to 940 million Snapchat users
• Announced alongside Snap's Q3 2025 results, showing $1.51 billion in revenue

The financials:

• Perplexity pays $400 million total in cash and equity
• Snap revenue up 10% year-over-year to $1.51 billion
• Company narrowed loss to $104 million from $153 million
• Snapchat+ subscription tier now has 17 million users

Why it matters:

While Perplexity has struggled to gain mainstream traction, competing directly with Google and ChatGPT, the Snapchat integration provides instant distribution to nearly a billion users, primarily Gen Z and younger millennials, who already use My AI for casual queries.

The $400 million payment represents a significant investment in embedded search, replacing standalone apps. However, it raises questions about whether Snapchat users want comprehensive AI search or just quick answers, and whether Perplexity can convert passive exposure into active usage and brand recognition.

👀 Read about Perplexity's Snapchat deal!

🗺️ Google Maps Replaces Assistant with Gemini for Conversational Navigation

Google replaced Assistant with Gemini in Maps, enabling hands-free conversational navigation with multi-step queries, landmark-based directions using visible buildings instead of distances, and proactive traffic alerts even without active navigation.

What's new:

• Gemini handles complex multi-turn conversations like "Find a budget-friendly vegan restaurant along the route" with follow-up questions about parking
• Connects with Calendar to add events and reminders automatically with permission
• Asks about sports scores, news updates, and popular dishes without leaving navigation
• Voice traffic reporting lets drivers say "I see an accident" or "flooding ahead"
• Lens identifies restaurants and landmarks through the camera with conversational Q&A

Landmark navigation:

• Replaces distance measurements with visible landmarks like "turn right after Thai Siam Restaurant"
• Analyzes 250 million places cross-referenced with Street View images
• Highlights landmarks on screen as drivers approach for visual confirmation
• Rolling out now in the US on Android and iOS

Proactive alerts:

• Notifies about unexpected closures and traffic jams without active navigation
• Alerts appear even when users aren't using Maps for known routes
• Currently rolling out on US Android only

Why it matters:

While Google has added AI features to Maps over the past year for discovery and reviews, integrating Gemini directly into navigation transforms the app from a command-based to a conversational experience for its 2 billion users. The shift positions Maps as a competitive showcase for Gemini against ChatGPT, mimicking an insightful passenger rather than robotic turn-by-turn directions.

However, Google clarifies that Gemini doesn't generate routes or determine turns, only enhances existing navigation, addressing past scrutiny over Maps directing drivers onto unsafe paths, though questions remain about voice data privacy and regional rollout delays due to hands-free regulations.

👀 Read about Google Maps' Gemini upgrade!

My Latest LinkedIn & X/Twitter Posts:

• How to analyze ad performance in real time with AI (view post)
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This Week's Top AI News Headlines:

• Tesla Shareholders Approve Elon Musk’s $1 Trillion Pay Package to Drive Robotaxi and Humanoid Robot Milestones (View Article)
• Amazon Adds AI Translation Tool for Self‑Published Kindle Ebooks (View Article)
• OpenAI Launches Apps SDK for ChatGPT, Bringing Services Like Spotify and Zillow into Chat (View Article)
• Google Finance Gets AI Deep Search, Prediction‑Market Data & Real‑Time Earnings Tools (View Article)
• Microsoft Introduces “Humanist Superintelligence” Vision to Develop AI That Serves Humanity (View Article)
• Google Prepares 7th‑Gen AI Chip “Ironwood” that Scales Up to 9,216 Units in a Single Superpod (View Article)
• Foursquare, a Location-Tech Company’s Founder Launches AI Audio App BeeBot to Whisper Local Updates into Your Headphones (View Article)
• Tinder Tests AI‑Powered “Chemistry” Feature that Scans Your Camera Roll to Suggest More Compatible Matches (View Article)
• Google Gemini Launches “Deep Research” Feature to Let You Pull insights From Your Emails, Drive & Chats (View Article)
• Sandbar, a Wearable Tech Startup, Launches “Stream Ring” AI Smart Ring that Lets You Whisper Thoughts into Text Notes (View Article)
• Sora, OpenAI’s AI Video Creation App, Sees Nearly 470,000 Installs on Android Launch Day (View Article)
• Pinterest CEO Emphasizes Open‑Source AI As Key Cost‑Cutting Strategy for Visual Search Tools (View Article)
• Replika Founder Raises $20 M Pre‑Seed for Wabi, a “YouTube for Apps” Platform Where Anyone Can Create and Share Mini‑Apps (View Article)

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Have a wonderful week!

Andrew Bolis