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You haven't seen Gemini 3 yet. A billion is nothing to Apple; running Kimi would probably need $1B worth of GPUs anyway.
People don't get that Apple would need an enormous data center buildout to provide a good AI experience on their millions of deployed devices. Google is in the exascale datacenter buildout business, while Apple isn't.
It's very simple: Apple absolutely refuses to send all their user data to Google.