Apple Picks Gemini to Run AI-Powered Siri | Bloomberg Tech 1/12/2026

Key Concepts

• AI & Pharmaceutical Industry: NVIDIA’s $1 billion investment with Eli Lilly to accelerate AI-driven drug discovery.
• Apple & Google (Gemini): Apple’s selection of Google’s Gemini model to power the next generation of Siri.
• Market Trends: Broadening market participation beyond the “Magnificent Seven” stocks, and the impact of AI infrastructure investment.
• NVIDIA’s Dominance: NVIDIA’s central role in AI infrastructure and its expanding partnerships.
• Robotics & AI Embodiment: 1X Technologies’ advancements in robotics with a new AI model focused on physical intelligence and real-world learning.
• Fintech & Regulation: Potential impact of a proposed 10% interest rate cap on credit cards.
• EV Market & Tariffs: EU’s consideration of minimum prices on EV exports from China as an alternative to tariffs.

NVIDIA & Eli Lilly Partnership: Accelerating AI in Pharma

NVIDIA is investing $1 billion over five years in a new Silicon Valley-based lab in partnership with Eli Lilly. This collaboration aims to speed up AI applications within the pharmaceutical industry, specifically focusing on drug discovery. Katie Greifeld reported that this builds upon a previous partnership established in October, where Eli Lilly collaborated with NVIDIA to develop an AI supercomputer. The ultimate vision, according to Eli Lilly’s CFO, is to leverage AI to discover drugs targeting difficult-to-treat diseases, such as those requiring gene therapy. This represents a significant move towards the “physical manifestation” of AI, extending its impact beyond digital applications.

Apple Selects Gemini for Siri: A $1 Billion Deal

Apple has chosen Google’s Gemini model to power Siri this year, a deal initially reported by Mark Gurman in November. CNBC cited an Apple statement confirming the agreement, which is estimated at $1 billion per year. This is considered an interim solution while Apple develops its own foundation models. The news caused a significant market reaction, with Alphabet shares initially spiking before stabilizing.

Market Dynamics & AI Investment

The market is showing signs of broadening beyond the “Magnificent Seven” stocks, with increased investor discernment regarding valuations. Despite this, investment in AI infrastructure remains robust. Denny Fish emphasized the “circularity” of AI investment, with companies like NVIDIA reinvesting in labs and direct investments (like OpenAI) based on their belief in the market’s potential. Rubin, NVIDIA’s latest chip, is now in full production and expected to significantly impact inference productivity. The total cost of data center infrastructure buildout is estimated at $3 trillion (Moody’s) to $7 trillion (McKinsey), raising concerns about funding, but hyperscalers are currently covering these costs through free cash flow commitments. However, the deployment of capital is expected to be measured, unlike the rapid deployment seen during the dot-com boom.

Robotics Advancements: 1X & the Power of Embodiment

1X Technologies, the maker of the Neo robot, has developed a new AI model grounded in physics. This allows Neo to perform tasks it hasn’t been specifically trained for, simply by receiving a prompt. Brent Burnett, CEO of 1X, highlighted the importance of “embodiment” – the robot’s physical similarity to humans – in enabling this capability. He explained that if a robot is close enough to human form, existing learning models developed for video can be effectively applied. Safety is a key focus, with 1X incorporating both passive (physical design) and active (AI alignment) safety measures. The company is also leveraging the increasing number of deployed robots to gather data and accelerate learning, reducing reliance on human-generated training data.

Fintech & Regulatory Pressure: Credit Card Interest Rates

President Biden is advocating for a one-year cap on credit card interest rates at 10%. While the legal feasibility of this proposal is unclear, it has sparked reactions in the fintech industry. Some companies, like SoFi, see potential opportunities, while others are cautiously assessing the impact. The move highlights concerns about high interest rates charged by some credit card providers, with rates reaching 28-30%.

Global EV Market & EU Trade Policy

The European Union is considering implementing minimum prices on electric vehicles (EVs) exported from China, as an alternative to steep tariffs. This move reflects a balancing act between meeting climate goals (which require increased EV adoption) and protecting domestic industries. Stephanie Brinley from Cox Automotive believes this is a reasonable compromise, as China is dominating the EV market and supplying essential battery minerals. The US market, however, remains largely closed to Chinese EV manufacturers due to political considerations.

Notable Quotes

• Denny Fish (on NVIDIA’s investment strategy): “If you are Jensen and you've got the firm belief in how big these market opportunities are, you should be leaning in hard to this, co-investing in labs or with direct investments into companies like they are doing with OpenAI.”
• Brent Burnett (on the importance of embodiment in robotics): “If your embodiment or robot is close enough to human, then all of these learning stuff they have for video transfer pretty well.”

Technical Terms & Concepts

• Foundation Models: Large AI models trained on vast datasets, capable of adapting to a wide range of tasks. (e.g., Gemini)
• Inference: The process of using a trained AI model to make predictions or decisions.
• Training: The process of teaching an AI model to perform a specific task.
• AI Supercomputer: A high-performance computer specifically designed for AI workloads.
• Quant Funds: Investment funds that use quantitative analysis and algorithms to make investment decisions.
• Hyperscalers: Large-scale cloud computing providers (e.g., Meta, Google, Microsoft).
• AGI (Artificial General Intelligence): A hypothetical level of AI that possesses human-level cognitive abilities.

Logical Connections

The program flowed from broad market updates (NVIDIA, Apple, market trends) to more specific deep dives into emerging technologies (robotics, AI in pharma). The discussion on AI investment and infrastructure buildout provided context for the NVIDIA-Eli Lilly partnership and the advancements being made by 1X Technologies. The segment on fintech and EV tariffs highlighted the increasing intersection of technology, regulation, and global trade.

Data & Statistics

• NVIDIA Investment: $1 billion over five years with Eli Lilly.
• Apple-Google Deal: $1 billion per year for Gemini to power Siri.
• Data Center Infrastructure Cost: $3 trillion (Moody’s) to $7 trillion (McKinsey).
• 1X Technologies’ Cost vs. Revenue: $6 million development cost, $700 million revenue.
• US EV Market (2025): Approximately 3.3 million vehicles (down 2% year-over-year).

Conclusion

The broadcast highlighted a dynamic tech landscape characterized by significant investment in AI, particularly in areas like drug discovery and robotics. NVIDIA’s continued dominance and strategic partnerships are shaping the industry, while companies like 1X Technologies are pushing the boundaries of what’s possible with embodied AI. Regulatory pressures and global trade dynamics are also playing a crucial role, influencing the direction of innovation and market access. The broadening of market participation beyond the “Magnificent Seven” suggests a more diversified future for tech investment, but AI infrastructure remains a key driver of growth.