Podcast Episode
The partnership fell apart when Anthropic demanded several billion dollars annually, with fees that would double each year for three consecutive years. As Gurman put it, Anthropic was holding Apple over a barrel, knowing Apple needed Claude's capabilities more than Anthropic needed Apple's money.
The financial contrast is stark. While Anthropic sought billions with aggressive annual increases, Apple's Google deal reportedly costs around one billion dollars per year, a fraction of what the AI startup demanded. CEO Tim Cook addressed the decision during Apple's Q1 twenty-twenty-six earnings call, stating that Google's AI technology would provide the most capable foundation for Apple Foundation Models.
Apple runs on Anthropic at this point, Gurman revealed. The company uses custom versions of Claude on its own internal servers, powering everything from product development workflows to video processing tasks and technical documentation.
Perhaps most significantly, Apple is developing a new version of Xcode that uses Claude Sonnet to write, edit, and test code, currently rolling out to internal teams. This means the same AI technology that was deemed too expensive to power Siri is now helping Apple engineers build the very products that will ship to consumers.
The arrangement reveals a pragmatic side to Apple's AI strategy that challenges its traditional vertical integration approach. For consumers, Siri will speak through Google. For the engineers building your next iPhone, Claude is quietly doing the heavy lifting.
Apple's Secret AI Partner: Why Siri Runs on Google While Cupertino Runs on Claude
January 31, 2026
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Apple was set to rebuild Siri around Anthropic's Claude AI until the startup demanded billions in escalating fees. The iPhone maker pivoted to Google's Gemini for its consumer assistant, but internally, Apple engineers rely heavily on custom Claude deployments for product development and coding tools.
The Deal That Nearly Was
Apple came remarkably close to powering its next-generation Siri with Anthropic's Claude AI before negotiations collapsed over pricing. According to Bloomberg's Mark Gurman, speaking on the TBPN podcast, Apple had intended to completely rebuild Siri around Claude after internal testing showed it was the best model available for their needs.The partnership fell apart when Anthropic demanded several billion dollars annually, with fees that would double each year for three consecutive years. As Gurman put it, Anthropic was holding Apple over a barrel, knowing Apple needed Claude's capabilities more than Anthropic needed Apple's money.
Google Steps In
With Anthropic out of the picture, Apple turned to Google. The two companies announced a multi-year partnership on January twelfth, with Gemini set to power the long-delayed Siri overhaul arriving with iOS twenty-six point four this spring.The financial contrast is stark. While Anthropic sought billions with aggressive annual increases, Apple's Google deal reportedly costs around one billion dollars per year, a fraction of what the AI startup demanded. CEO Tim Cook addressed the decision during Apple's Q1 twenty-twenty-six earnings call, stating that Google's AI technology would provide the most capable foundation for Apple Foundation Models.
Claude Quietly Powers Cupertino
Here's where the story takes an unexpected turn. Despite losing Anthropic as its consumer AI partner, Apple has become deeply dependent on Claude behind the scenes.Apple runs on Anthropic at this point, Gurman revealed. The company uses custom versions of Claude on its own internal servers, powering everything from product development workflows to video processing tasks and technical documentation.
Perhaps most significantly, Apple is developing a new version of Xcode that uses Claude Sonnet to write, edit, and test code, currently rolling out to internal teams. This means the same AI technology that was deemed too expensive to power Siri is now helping Apple engineers build the very products that will ship to consumers.
Privacy and the Path Forward
Apple has confirmed that Gemini-powered Siri will run on its Private Cloud Compute infrastructure, addressing privacy concerns about integrating external AI models. The company continues developing its own one trillion parameter cloud-based model, with plans to eventually transition away from external dependencies.The arrangement reveals a pragmatic side to Apple's AI strategy that challenges its traditional vertical integration approach. For consumers, Siri will speak through Google. For the engineers building your next iPhone, Claude is quietly doing the heavy lifting.
Published January 31, 2026 at 3:15am
