Apple's Gemini Deal Finalized, Creator Studio Launches Amid Regulatory Battles

CUPERTINO – Apple's week featured major AI partnerships, new subscription offerings, and intensified regulatory scrutiny. The tech giant finalized its artificial intelligence framework while battling government demands and supply chain constraints.

AI Ecosystem Reshaped

Apple confirmed Google's Gemini will power Siri's upcoming AI features, ending months of speculation. The multi-billion dollar deal establishes Gemini as the foundational model for Apple's on-device and cloud-based AI services. This comes after reported negotiations with OpenAI collapsed over branding disagreements.

Separately, Apple launched Creator Studio – a $14.99/month subscription bundle offering Final Cut Pro, Logic Pro, and new collaboration tools. The service targets professional content creators with shared cloud projects and team management features.

Regulatory Pressures Mount

India's Competition Commission rejected Apple's request to delay an antitrust investigation, demanding access to iOS source code. The probe examines whether Apple favors its own apps in search results and payment processing. Legal experts call the source code demand "unprecedented overreach" that could compromise security architectures.

Meanwhile, Korean courts denied Elon Musk's request for Apple documents in his lawsuit alleging unfair competition. The Tesla CEO publicly criticized the Apple-Google deal on social media platforms.

Hardware Challenges Emerge

Supply chain reports indicate Apple is paying premium prices to secure TSMC's 2nm chip capacity. The company competes with AI chip manufacturers for limited production slots, potentially increasing device costs. Industry analysts note this could impact pricing for upcoming iPhone 17 and M4 MacBook Pro models.

Apple simultaneously faces component shortages for its OLED MacBook Pro development, though production appears ahead of schedule according to display industry sources.

Software Developments

• iOS 26.3 beta 2 introduced refined Always On Display settings with notification prioritization
• Health app redesign confirmed for late 2026 featuring medication tracking and health journal
• New "Games" app discovered in iOS 26 code, suggesting Apple Arcade expansion

Market Shifts

Counterpoint Research data shows Apple surpassing Samsung in smartphone market share (24% vs 22%) – the first time iPhone shipments led globally without holiday quarter influence. The iPhone 17 series and rumored iPhone Fold (2027) could further cement this lead.

As Apple navigates AI integration and regulatory hurdles, its services division reported record growth. Eddy Cue highlighted 950 million paid subscriptions across Apple's ecosystem, with Creator Studio positioned as the next growth vector.

Developers can explore Creator Studio APIs starting February 3rd. Public iOS 26.3 release expected mid-March.