Apple Picks Gemini to Run AI-Powered Siri - bloomberg-technology Recap

Podcast: bloomberg-technology

Published: 2026-01-12

Duration: 43 minutes

Guests: Katie Greifeld, Denny Fish, Felix Gillette

Summary

Apple has chosen Google's Gemini model to enhance Siri with AI, signing a $1 billion annual deal. Nvidia is investing significantly in AI for pharmaceuticals, while Paramount and Warner Bros. Discovery engage in boardroom battles.

What Happened

Apple has made a strategic move by selecting Google's Gemini model to power Siri, securing a $1 billion annual deal. This decision is expected to enhance Siri's capabilities by integrating advanced AI features, which could position Apple at the forefront of voice-activated technology. Caroline Hyde emphasizes that this partnership represents a significant shift for Apple, traditionally known for its in-house development approach.

Nvidia is making waves in the pharmaceutical industry by co-investing $1 billion with Eli Lilly over the next five years. This collaboration aims to establish a Silicon Valley-based lab dedicated to leveraging AI for drug discovery, particularly targeting hard-to-treat diseases. Katie Greifeld notes that this partnership exemplifies the growing trend of AI's application in various industries, including healthcare and autonomous driving.

AI infrastructure investments continue to surge, with expectations of robust growth driven by applications like inference. Denny Fish mentions that this sector's expansion is comparable to the dot-com era but anticipates a more measured deployment of capital. Moody's projects the cost of data center infrastructure build-out to be between $3 trillion and $7 trillion by 2030, reflecting the massive scale of AI's integration into the economy.

In the entertainment sector, Paramount is taking an aggressive stance against Warner Bros. Discovery by nominating directors to its board. This move is part of Paramount's strategy to prevent a potential merger with Netflix, citing transparency issues. Felix Gillette provides insight into the growing tensions between major entertainment companies as they navigate the complex landscape of mergers and acquisitions.

The episode also touches on Deep Seek's hedge fund, High Flyer, which saw a remarkable 50% surge last year, driven by significant AI investments. With a reported development cost of $6 million, Deep Seek's AI model is projected to generate revenues of $700 million, highlighting the lucrative potential of AI-driven financial strategies.

The European Union's consideration of minimum prices for Chinese electric vehicles, rather than tariffs, is another topic of interest. This policy aims to boost EV adoption and meet climate goals. However, Chinese EVs face hurdles entering the US market due to political challenges, despite consumer demand for high-tech, affordable options.

Key Insights

• Apple has entered a $1 billion annual deal with Google to use its Gemini AI model for enhancing Siri, marking a departure from Apple's traditional in-house development approach.
• Nvidia and Eli Lilly are co-investing $1 billion over five years to create a Silicon Valley lab focused on AI-driven drug discovery, targeting diseases that are difficult to treat.
• Moody's projects that the cost of building out data center infrastructure for AI applications could reach between $3 trillion and $7 trillion by 2030, indicating significant economic integration.
• Deep Seek's hedge fund, High Flyer, achieved a 50% increase last year due to AI investments, with its AI model, developed at a cost of $6 million, expected to generate $700 million in revenue.