Starting with One UI 7, Samsung has deeply integrated Google’s Gemini AI across the Galaxy ecosystem, including within several first-party apps. The company prioritized Gemini over its own Bixby assistant. But this move appears to be more than just a strategy or collaboration. Instead, Google is paying Samsung a substantial amount to pre-install Gemini on its devices.
Samsung prioritizes Gemini over Bixby, thanks to Google’s billion-dollar deal
It’s no secret that Google pays companies to pre-install its apps on their devices. It was found to have paid Samsung $8 billion between 2020 and 2023 to secure default placements for Google Search, the Play Store, and Assistant on Galaxy phones. Despite lawmakers tightening their grip against these kinds of illegal payouts, Google continues such practices.
A fresh federal antitrust trial reveals that the internet giant is paying Samsung an “enormous sum of money” each month to pre-install Gemini AI on Galaxy devices. Testimony from Peter Fitzgerald, Google’s VP of platforms and device partnerships, confirmed that the payments began in January 2024. These payments are part of a multi-year agreement between the two parties.
The deal includes fixed monthly payments per device and revenue sharing from ads shown within the Gemini app. While the exact dollar amount remains undisclosed, the Department of Justice (DOJ) characterizes the monthly sum as “enormous.”
The revelation came during an ongoing antitrust case in a Washington D.C. federal court, where Judge Amit Mehta is determining the remedies Google must face for its past anticompetitive practices. Mehta previously ruled that Google violated antitrust laws by paying to become the default search engine on Samsung devices.
The DOJ argues that these deals are part of a broader pattern of behavior designed to entrench Google’s dominance, not just in search, but increasingly in AI. DOJ attorney David Dahlquist warned that Google’s monopoly in search allows it to develop superior AI tools like Gemini, which then funnel users back to Google’s ecosystem, reinforcing its market stranglehold.
Google justifies the move, calls it a business deal
Internal documents disclosed during the trial show Google may extend the Gemini deal with Samsung through 2028. This would lock its AI presence on the world’s largest smartphone brand for years to come. The partnership gained public visibility following the launch of Galaxy AI on the Galaxy S24 series.
From Google’s perspective, Samsung’s massive global device footprint offers an unmatched platform to scale Gemini’s reach. In return, Samsung receives a significant financial boost. But critics say the arrangement is less about partnership and more about preempting fair competition in the AI space.
The DOJ’s case aims to impose structural changes — possibly including the forced divestiture of Google Chrome — to prevent the company from using its market power to dominate emerging technologies. If successful, the ruling could reshape not only how tech giants strike deals but also how they integrate and distribute AI products across their devices.
The Gemini deal surely appears to be a win-win for both Google and Samsung. However, the legal spotlight now shining on it suggests the days of such behind-the-scenes agreements may be numbered. We shall find out soon.
