Apple is in negotiations to integrate Google’s Gemini artificial intelligence engine inside the iPhone.
The talks are about licensing Gemini for certain new capabilities that will be added to the iPhone software this year. The specifics of the AI arrangement, like as its branding and implementation strategy, have not yet been determined.
Early U.S. trade saw a 6% increase in Alphabet shares while Apple saw a 2.5% increase.
An agreement is unlikely to be publicized before June, when Apple is scheduled to host its annual developer conference. Additionally, the source states that the iPhone manufacturer recently had discussions regarding the use of its model with ChatGPT vendor OpenAI.
In an attempt to close the gap with Microsoft, a possible agreement between the two companies might let Google to make its AI services available to over 2 billion active Apple devices.
Additionally, it might help calm investor concerns about Apple’s sluggish AI app roll-out. This year, a 10% drop in the company’s share price has cost Apple its position as the most valuable company in the world.
Laptops 1000With a genAI relationship, the Alphabet subsidiary may be able to ease concerns that services like ChatGPT will undermine its dominant position in search.
The companies have been in partnership for years, and as a result, Google is the default search engine for Apple’s Safari web browser.
However, the deal might also draw closer examination from US authorities, who have already filed a lawsuit against Google because it illegally suppressed competition by giving Apple billions of dollars to keep its search monopoly.
“This strategic partnership is a missing piece in the Apple AI strategy and combines forces with Google for Gemini to power some of the AI features Apple is bringing to market,” said Daniel Ives, a Wedbush analyst.
He was alluding to Apple’s California headquarters when he remarked, “This is a major win for Google to get onto the Apple ecosystem and have access to the golden installed base of Cupertino with clearly a major license fee attached to this.”
In January, Google collaborated with Samsung, Apple’s rival, to introduce its genAI technology into the Galaxy S24 smartphone series from the South Korean company.
This move was made as part of Google’s attempt to increase the usage of Gemini following some technical difficulties at the launch.
Tim Cook, the CEO of Apple, stated last month that the business was “significantly” investing in generative AI and that additional information about how the technology would be used would be released later in the year.
Laptops 1000Apple is looking for a partner to power genAI features, such as the ability to create images and write essays based on simple prompts. Still, it plans to employ its own in-house AI models for some new capabilities in its upcoming iOS 18.
