Apple’s preferred AI partner priced them out โ a sign of how far behind Apple has fallen in the AI race.
The Two Players
| Apple | Anthropic |
|---|---|
| Favored Claude in testing | Amazon/Google own ~40% |
| Desperate for AI models | Didn’t need Apple |
Deal Failed
Anthropic’s Ask: Multi-Billion $
Annual fee, increasing sharply each year
Why Anthropic Had All the Leverage
- Already Backed โ Amazon + Google own ~40% of Anthropic already
- Cash Rich โ Didn’t need Apple’s money as much as Apple needed Claude
- #1 Best Models โ Apple’s own testing showed Claude was the best option available
The Power Dynamic
Apple needed Anthropic more than Anthropic needed Apple
The Outcome
What Apple Wanted
- โ Claude for Siri (best-in-class AI)
- โ Reasonable licensing terms
- โ Exclusive or preferred partnership
- โ Quick deal to catch up on AI
What Apple Got
- โ No Claude deal
- โ Priced out by multi-billion ask
- โ Forced to compromise with Google
- โ Further delays in Siri upgrade
The Fallback: Google Gemini
$1B/year โ The compromise choice
This is part of a comprehensive analysis. Read the full analysis on The Business Engineer.









