Google’s Pixel 11 puts Gemini at the center of AI phone battle with Apple

alphabet It announced its new Pixel 11 smartphone lineup on Wednesday, and just a few weeks ago put the most agent-like version of Gemini yet at the center of the device. apple is expected to roll out a reimagined Siri leveraging Google’s AI models.

The new lineup includes Pixel 11, Pixel 11 Pro, Pixel 11 Pro XL, and Pixel 11 Pro Fold. But Google’s hardware proposal is equally focused on Gemini Intelligence, a set of artificial intelligence features designed to understand what you’re doing on your phone and take actions across different apps.

For example, Gemini Intelligence can connect information from your messages, calendar, maps, and other Google services to suggest or take next steps, such as checking availability, comparing travel options, or starting a restaurant reservation. Google is also expanding its AI capabilities to work directly within a phone’s operating system, rather than requiring users to open a standalone chatbot.

Rick Osterloh, head of devices at Google, told CNBC in an exclusive interview that the company believes AI has the potential to fundamentally change the way people interact with their smartphones.

“The way we use laptops and cell phones hasn’t changed much over the past 10 to 15 years,” Osterloh says. “But we think that’s about to change dramatically.”

He described Gemini Intelligence as “a whole new way to interact with computers” with agent capabilities that allow users to “not just find information, but do things.”

This announcement puts Google in the unusual position of competing directly with one of AI’s biggest customers.

Apple is rebuilding Siri around Google’s Gemini model, aiming for many of the same broad goals that Google is currently showcasing on the Pixel: understanding personal information, recognizing what’s happening on your screen, and taking actions across apps.

When asked if Pixel would give Google an early opportunity to introduce its model to iPhone users before it reaches them, Osterloh dismissed the idea that the two experiences will be the same.

“Obviously, I think Pixel and iPhone are going in very different directions,” Osterloh said. “Leading with new technologies, particularly Gemini and AI, has always been at the forefront of Pixel’s product strategy.”

Osterloh pointed to features like fraud detection, Rambler voice transcription technology, and deeper integration of Gemini across Android as features that set the Google experience apart.

“All of this is unique to Android and Gemini Intelligence,” he said. “So these are things you’re going to want to get your hands on a Pixel or Android phone and experience.”

The question for both companies is whether increasingly sophisticated AI will be enough to persuade consumers to buy new phones.

Osterloh acknowledged that AI is not the biggest reason people upgrade their devices, but said its prevalence among consumers has increased rapidly in recent years.

According to Counterpoint Research, AI currently ranks around 6th or 7th among the reasons why consumers upgrade their smartphones, but it has moved up one or two spots in the latest research due to the improved capabilities of Gemini and Apple Intelligence.

Tarun Pathak, research director at Counterpoint, says compelling use cases and increased consumer awareness are key to converting growing interest into actual upgrades. He expects Apple intelligence to be a catalyst for iPhone upgrades, noting that Apple already has more generative AI-enabled smartphones in consumers’ hands than any other brand.

Google believes Gemini will eventually become more central to how people use their devices.

“We think it will become increasingly important and perhaps someday become the primary way people use their phones, laptops and other devices,” Osterloh said.

Google is also trying to address another industry-wide pressure: rising hardware costs due to a shortage of memory components.

“We are clearly running out of memory, both RAM memory and flash memory,” Osterloh told CNBC.

He said the squeeze is forcing consumer electronics makers to raise prices, suggesting Google expects more pressure on its devices.

“I think what’s happening in the short term is that everyone has to raise prices,” Osterloh said. “We also discussed that, like all other players in the industry, we too need to raise capital.”

Google’s new Pixel generation gives the company the first chance to test whether a more autonomous AI assistant can meaningfully change the way a smartphone behaves.

Apple will soon make a similar bet with a much larger installed base. According to Counterpoint, this will be the largest hub of generative AI-enabled smartphones already in the hands of consumers.

WATCH: Google devices chief: Pixel and iPhone are moving in completely different directions