I suppose it depends on how you read the article. It could be interpreted as Apple asking Google to help them setup Gemini on APPLE servers, in which case, yes, I agree.
Apple already said as much a couple of months ago.
" ... After careful evaluation, Apple determined that Google's Al technology provides the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will unlock for Apple users. Apple Intelligence will continue to run on Apple devices and Private Cloud Compute, while maintaining Apple's industry-leading privacy standards. ..."
Apple and Google have entered into a multi-year collaboration under which the next generation of Apple Foundation Models will be based on Google's Gemini models and clou…
blog.google
So Apple is getting access to a variant of Gemini model that has been ported to run on Apple's PCC and fit inside Apple Privacy/Encryption methods.
Apple isn't getting unmodified Gemini with a super thin facade of Apple. It is much closer to Apple getting a 'ported' version of Gemini. ( Somewhat similar to how MS office isn't the exact same binaries as MS Office on Windows. )
Or it could be interpreted as setting up Gemini on Google's servers. That would probably give a lot of people cause for concern. Myself included.
If it is the same modified version as running on PCC (i.e., with Apple encryption key methods , etc. wrapped around it ) what is the meaningful difference ? If Apple put there PCC silicon inside a Google Data center ... would that be different ( Google provides power and internet connection) but all running on Apple hardware?
I haven't read the article, but this may be tap dancing around maybe Apple weaving in access to the unported version of Gemini soon for some corner cases. If is about Apple not wanting to pay for hardware that may have half life of 2 years then is a substantively different issue than privacy. The Information also had rumors about Apple making a joint chip with Broadcomm. If don't want to do that long term then Google Cloud with encryption keys policy managed by Apple is an option. ( if a semi-custom Gemini model costs $1B for 4 years and a server chip development cost $1B for 4 years, it is a larger hardware development risk to sit on top of shared hardware where there are more customers than just Apple PCC).
The key piece most of the thread seems to miss is the PCC running at 10% utilization. That is
horrible financially for a hosted services provider (want to be up in the 65-95% range). A vastly more expensive Apple chip run at those levels would be an even bigger financial crater.
The other issue mentioned is that they have servers with no placement in a datacenter. Is there tons of empty Apple datacenter space and gobs of excess electricity to put these in and power them up??? [ If Apple had gobs of excess space they could rack them and turn them off in the datacenter. ]
It could be that when the ported Gemini rolls out PCC goes to 99% utitilization. At that point it isn't really a "Or it could be" issue. It would be they need
both options issue. There would be occasional peak load spill-over events when PCC would get overwhelmed and Apple would need a spill-load facility to soak up the rest. [ pragmatically in some parts of world may just need to use Google because Apple isn't close enough. Also has some folks pointed out Apple may be able to 'hand wave' at their green datacenter pledge by sending excessive compute loads to Google centers that don't technically count. ]
Another issue with depends how you read it "...run a future version of Siri powered by Gemini, .." . Is that the one coming in Fall 2026 or that is an even larger footprint model 2-3 years down the road? Or is Apple decided to do a "Apple AI Pro" variant with Google that is priced more like Gemini AI Ultra/Plus. Users who are very heavy duty workload... PCC hardware may not be the best match if PCC is primarily designed around being a "no additional cost" service. One of PCC's features is to forget as much data as soon as possible. That works for one-shot queries. Probably doesn't work for 8-48 hour long assignments.