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The big picture: Gemini AI comes preinstalled on Samsung's latest mobile devices, and Google is paying a significant amount for that privilege. According to executives in Mountain View, the deal is set to last for several years, and over time, Gemini is expected to begin delivering ads directly to users.
Alphabet is spending an "enormous sum of money" to keep its Gemini chatbot preinstalled on Samsung phones. According to Google's vice president of platforms and device partnerships, Peter Fitzgerald, the company is paying the Korean manufacturer on a monthly basis, though no information about the actual amount has been disclosed so far.
Fitzgerald revealed the exclusive deal earlier this week during his testimony in Google's ongoing antitrust case. The partnership is set to run for at least two years, with Google paying for every Samsung device that ships with Gemini preinstalled. The phone maker is also receiving a share of Google's revenue from paid subscriptions, along with a cut from future advertising earnings.
Gemini currently doesn't include ads, but Google may be forced to implement this "feature" in the app down the line. Gemini boss Sissie Hsiao confirmed this possibility, noting that Google executives are already discussing the matter internally.
So far, Gemini and other AI chatbots haven't begun to "cannibalize" the company's core revenue streams from search and advertising, Hsiao said – but that could change. In her latest testimony, she stated: "It really depends on whether chatbots or AI assistants become good at helping people" online.
Before entering into a partnership with Google, Samsung received "competitive" offers from other companies developing AI models. Google apparently took those proposals into account and likely presented Samsung with an offer it couldn't refuse. Payments from Mountain View began in January, coinciding with the launch of the Galaxy S25, which came with Gemini preinstalled.
However, Google may eventually be forced to reevaluate its deal with Samsung, and potentially all similar partnerships with phone makers. US courts have already found the company guilty of maintaining an unlawful advertising monopoly, and the Department of Justice is now determining the most appropriate penalties for Google's anticompetitive conduct.
Under a potential second Trump administration, the DOJ could force Google to divest the Chrome web browser, license the large proprietary datasets behind Google Search, or block the company from entering future default search agreements. While Google might prefer to simply end those default deals, the new administration appears poised to impose far more severe consequences on Mountain View.
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