Tuesday, September 15, 2026 Trend Press · Cloudflare Pages

The Trend Tribune

"All the trends that are fit to read" Morning Edition Free of Charge
TODAY'S LEAD STORY

The day Google became the brains behind Apple products: The 1.2 trillion parameters that power Siri AI

The Siri AI, which was released in beta on September 14th, is not based on a model developed in-house by Apple, but rather on a Gemini model with 1.2 trillion parameters customized by Google for Apple. This can be seen as a practical example of incorporating a frontier model from another company, encompassing aspects such as the division of responsibilities via Private Cloud Compute, contracts estimated to be worth 100 billion yen annually, and antitrust risks.

The day Google became the brains behind Apple products: The 1.2 trillion parameters that power Siri AI
(Photo: illustrative)

Another Partnership Quietly Begins on September 14th

On September 14th, the same day iOS 27 was released, Apple unveiled a beta version of its revamped assistant, "Siri AI." Behind the flashy keynote, a much bigger story was unfolding. The brain of Siri AI isn't an Apple-developed model, but rather Google's "Gemini." The two companies announced a multi-year agreement in January, but this is the first time the feature has actually reached users. As an engineer, following the details of this partnership reveals a design philosophy that goes beyond simply "adopting another company's model."

What is Siri AI?

Siri AI is a conversational assistant that understands personal contexts such as messages, emails, and photos, and can answer questions about what's displayed on the screen. It's also available as a standalone app and can handle cross-app operations (such as drafting emails or editing and sharing multiple photos). The English beta will be released first, with French, Japanese, Korean, Portuguese, and Spanish versions to be added in October or later. Supported devices are broad, starting with the iPhone 15 Pro, and will also be rolled out to iPad, Mac, Apple Watch, and Vision Pro.

Google's Gemini is running behind the scenes

This is the most important point I want to emphasize. According to multiple reports, the core of Siri AI is a 1.2 trillion parameter Gemini model customized by Google for Apple, running on Google Cloud via Apple's "Private Cloud Compute" privacy-protected infrastructure. Thomas Klein, head of Google Cloud, reportedly described his company as "the preferred cloud provider for Apple's next-generation AI model" at the Google Cloud Next 2026 conference. While users won't see any Google branding, some analysts suggest that the complex queries are actually being handled by Gemini running on NVIDIA's Blackwell B200 chip.

Why Apple Abandoned Its Own Model

Apple had been developing its own cloud model for many years, but according to reports, its scale remained at around 150 billion parameters, nearly eight times smaller than Google's customized model with 1.2 trillion parameters. Analysis suggests that attempting to run a frontier-level model on its own Private Cloud Compute would not meet Siri's required response speed. Acknowledging that they were "two years behind in developing their own" and deciding to continue in-house development while borrowing a frontier model is a rational choice for an engineering organization. In fact, the contract has a non-exclusive structure, and it reportedly includes "Any Model" extensibility, allowing other AI models to be integrated into Siri via the App Store in the future.

The Architecture's Inner Workings—Where Does "Apple" End and End?

What's technically interesting is how the lines of responsibility are drawn. Apple completely controls Siri's visual design, voice, and user experience, while Gemini functions solely as the inference engine. Apple's design is believed to process lightweight tasks on its own devices and Private Cloud Compute, routing only queries requiring heavier inference to Google. Gemini's Mixture-of-Experts architecture, which only invokes a small portion of the entire model for each query, is one reason why frontier-level models can be rented at a realistic cost.

How to interpret the 100 billion yen annual figure

According to Bloomberg, the contract is worth approximately $1 billion annually (about 150 billion yen), and analyst Gene Munster estimates the total multi-year contract could reach up to $5 billion. For comparison, Apple pays Google $20 billion annually for Safari's default search engine, making this Gemini contract about one-twentieth of that amount. However, this is an "initial price," and as with the search contract, the amount could easily increase as the integration deepens.

The Shadow of Antitrust Laws

A regulatory risk cannot be overlooked. Some analysts suggest that the partnership between Google and Apple, who already hold a $20 billion default search contract, and Apple's further deepening ties in the AI ​​field could be mentioned in the U.S. Department of Justice's antitrust lawsuit against Google. The extent to which regulators will overlook the increasing commercial ties between the two companies will likely be a key focus going forward.

What Engineers Should Watch

The architecture of Siri AI serves as a valuable example for designing how to integrate other companies' frontier models into one's own products. It clearly separates the user experience layer from the model layer, maintains its own infrastructure for privacy protection (Private Cloud Compute), and outsources the inference itself. This "borrowing while self-sufficient" design philosophy is insightful for many companies that do not have their own frontier models. We should keep a close eye on the multilingual rollout after October and how concrete the Any Model concept becomes.

AppleGoogleGeminiSiriAIエージェント

An accountant reads the caveat of "80% gross profit"—Anthropic explains the details of its profits to investors.

The Financial Times reported that Anthropic, which is preparing for a Nasdaq listing, has told some shareholders that it expects to post a positive adjusted operating income for the second quarter. The figures of $11.5 billion in sales and a gross profit margin of over 80% are "adjusted" metrics that exclude stock-based compensation, revenue sharing to sales partners, and model training costs, and we will break down the definition of these metrics from an accountant's perspective.

Unusual Disclosure Just Before IPO

The Financial Times reported that Anthropic, ahead of its Nasdaq listing, informed a limited number of existing shareholders that it expects to post a second consecutive quarter of adjusted operating profit in the second quarter. This is seen as an attempt to alleviate investor concerns about the massive cash flow of the frontier AI company. As an accountant, when I look at this kind of "pre-investor disclosure," I have a habit of first checking "what is being said and in what definition" rather than just the numbers themselves. This time, I would like to break down the numbers from that perspective as well.

Listing the Numbers

Organizing the reported figures, second-quarter revenue was $11.5 billion (approximately 1.7 trillion yen), 14 times higher than the same period last year. Annualized Revenue (ARR) reached $65 billion at the end of July, a significant increase from the $9 billion projected for the end of 2025. According to an analysis by SemiAnalysis analyst Joey Brookhart, investors expect annualized earnings to reach $120 billion by the end of the year and nearly triple by the end of 2027. On a quarterly basis, this represents a roughly 143% increase, from $4.73 billion in the first quarter to $11.5 billion in the second quarter. The rapid growth itself is undeniable.

The Magic Word: "Adjusted Operating Income"

This is the part I, as an accountant, most want to write about. The "profit" reported here is based on "adjusted operating income," a figure that excludes costs such as stock-based compensation expenses. This is different from net income under generally accepted accounting principles (GAAP), and it would be premature to conclude that "Anthropic has become a profitable company" based solely on this metric. A positive adjusted operating income and actual positive cash flow are two different things.

What's Missing from the "80% Gross Profit Margin"?

Another key figure is the announcement of a "gross profit margin exceeding 80%." Before taking this literally, it's necessary to clarify its definition. According to reports, this 80% figure is before deducting revenue sharing to sales partners, including Amazon, and model training costs. For a frontier AI company, training costs are a fundamental expense, and a gross profit margin excluding them cannot be directly compared to the gross profit margins of mature software companies. One report accurately describes the scope of this figure, stating that "the gross profit margin excluding training costs is merely an indicator of how profitable it is to provide existing models to customers."

How to Interpret Quarterly Growth Rates

It's also emphasized that the materials Anthropic has presented to investors are "preliminary and unaudited." There's a good chance the figures will be revised before the prospectus is actually published. Nevertheless, the fact that the company's growth rate was 14 times higher than the same period last year, and that its annualized revenue had reached $65 billion, indicates that the business model of frontier AI companies is moving from a stage where "the more you use it, the bigger the losses" to a stage where it is at least profitable for the services provided to existing customers. It should also be noted that CEO Dario Amodi published an article the day before this disclosure calling on the AI ​​industry to slow down its development pace. The fact that two seemingly contradictory messages—selling rapid growth to investors while publicly calling for an industry slowdown—were sent out at the same time is worth considering in predicting how the stock market will react in the future.

Nasdaq, a New Milestone of $2 Trillion

It has been reported that the company will list on Nasdaq, and sources close to the Financial Times say that its valuation could exceed $2 trillion. If this happens, it would surpass the record set by SpaceX, which listed on Nasdaq in June and achieved a valuation of $1.77 trillion. However, this valuation is merely a trial balloon, and it remains to be seen how well it will be maintained after the actual prospectus is released. The prospectus was originally scheduled for release last week, but Anthropic has switched to a policy of disclosing it to a select group of investors first, and then releasing it to the public after receiving feedback. This cautious approach itself suggests that the company is paying close attention to how the figures will be perceived.

Points to Note from an Accountant's Perspective

Looking only at headlines such as "Two Consecutive Years of Profit" and "Gross Profit Margin Exceeding 80%", it might seem that Anthropic has already established a stable revenue base. However, from an accountant's perspective, these are all "adjusted" figures that exclude certain assumptions and are far removed from the actual situation on a GAAP basis. The significance of this disclosure lies not in the conclusion that "the company has actually already achieved profitability," but in the fact that "the time has come to provide reassuring information to investors." We should continue to closely monitor how the unadjusted figures, actual learning costs, and cash flow statement will be disclosed in the formal prospectus that will be released in the future.

AnthropicIPOファイナンス決算Nasdaq

Humankind can finally read the "instruction manual" for the human body—DeepMind releases a map of 9 billion possible DNA mutations.

Google DeepMind's "AlphaGenome Atlas," released on September 8th, is a database that pre-calculates predictions for all 9 billion possible single nucleotide variants in the human genome. We will analyze the paper and official announcements, examining the new AVI score metric, independent validation by the UK Biobank and the Broad Institute, and the explicitly stated limitations that clinical use is not intended.

"I bought the book, but I didn't know how to read it."

On September 8th, Google DeepMind unveiled a new platform called "AlphaGenome Atlas." It's a database that provides pre-calculated predictions for all 9 billion possible single-nucleotide variants (Snucleotide variations) in the human genome—that is, all combinations of "what happens when you replace one letter of DNA with another." Pushmith Kohli, head of DeepMind's AI for Science division, reportedly said at a press briefing, referencing the "unfinished business" of the Human Genome Project, completed in 2003, that "we bought the book, but we didn't know how to read it." While the genome sequence itself was deciphered more than 20 years ago, understanding the "meaning" of that sequence remained an incredibly time-consuming task.

What is AlphaGenome Atlas?

The foundation is "AlphaGenome," an AI model released by DeepMind last year. AlphaGenome can predict how mutations in DNA sequences containing non-coding regions (regions that do not code for proteins but regulate the on/off state of genes) will affect gene expression, splicing (RNA editing), and chromatin structure. Previously, researchers had to either input each mutation they wanted to know about into the model and calculate the results, or painstakingly verify them in the laboratory. AlphaGenome Atlas pre-calculates these predictions for all approximately 9 billion possible single-nucleotide substitutions in the human genome and packages them in a form accessible via a web browser. According to a DeepMind paper, each mutation is associated with an average of approximately 27,000 individual predictions, calculated across hundreds of human and mouse cell and tissue types.

The Invention of the AVI Score

A new metric, the "AlphaGenome Variant Impact (AVI) score," is practically important for researchers. Simply looking at the vast amount of prediction data makes it difficult to determine which mutations are truly important. The AVI score consolidates these predictions into a single numerical value, allowing for a ranking of how strong the biological impact of each mutation is likely to be. For protein-coding regions, it combines insights from DeepMind's existing model, "AlphaMissense," while for non-coding regions, it relies on predictions from AlphaGenome. Furthermore, a "feature contribution" is calculated, indicating which molecular processes (such as RNA splicing or gene expression) are predicted to be most disrupted, ensuring researchers don't perceive the score as a mere black box.

How was it validated?

According to the validation results presented in the paper, the AVI score demonstrated top-tier performance across multiple benchmarks in distinguishing between pathogenic and harmless mutations in clinical genomics databases. A team at the University of Exeter in the UK validated it using whole-genome data from the UK Biobank, and a team at the Broad Institute in Massachusetts has also independently utilized the predictions from this atlas. The fact that multiple independent validations by non-DeepMind researchers are underway is crucial for evaluating the reliability of this type of large-scale prediction tool. On the other hand, Martin Kircher, a bioinformatician at the Max Delbrück Center for Molecular Medicine in Berlin, praised it as "a useful and generous way to greatly expand access to powerful models," but cautioned that "it will not replace experiments or the consideration of individual differences in disease diagnosis."

Researchers are already using it

Immediately after the paper's publication, there have been reports of it being used in actual analyses. One researcher identified 19 genomic regions that appear to be related to BMI (Body Mass Index) from non-coding variants narrowed down to the top 1% in terms of predictive impact. Multiple access routes are available, including a web portal for researchers without coding experience, a GitHub API that can be called from programs, and even skills to integrate it into DeepMind's agent-based development platform, Google Antigravity. Non-commercial academic use is free, while commercial use involves licensing a 1-petabyte dataset via Google Cloud.

Limitations Clearly Stated

An important note clearly stated by DeepMind itself is that AlphaGenome has not been validated or approved for clinical use. It is purely a research tool for hypothesis generation and prioritization, and is not intended for use in diagnosis itself. Jonathan Sebat of the University of California, San Diego, who specializes in psychiatric genetics, also supports a cautious approach, while acknowledging its potential to accelerate this type of research. While the impressive figure of "9 billion predictions" is eye-catching, it's clear that this means "the speed at which hypotheses are narrowed down has increased," not "answers to diagnosis or treatment."

What Researchers Should Consider

The essential value of this atlas lies not so much in the accuracy of individual predictions themselves, but in the fact that it eliminates the research bottleneck of "running the model from scratch for each mutation" through pre-calculation and indexing. The comparison between "experiments in a drying room" and "computer-based screening," often cited in the field of genomics, has become practical for the first time on this scale. What we should keep an eye on going forward is how independent groups other than the UK Biobank and the Broad Institute will validate data of this magnitude and what kinds of disease research they will apply it to. If the Human Genome Project was at the stage of "reading" the sequence, then the AlphaGenome Atlas is the first step in the attempt to "index its meaning," and the evaluation continues to be in its early stages.

DeepMindAlphaGenomeゲノミクスAI for Science企業公式発表
Advertisement300 × 250