Apple and Google’s Gemini Team Up for iPhone AI Boost
Apple is currently in discussions to integrate Google’s Gemini artificial intelligence engine into its iPhones, according to a Bloomberg News report, which quotes sources familiar with the matter.
These talks revolve around the idea of licensing Gemini to enhance the iPhone with new functionalities expected to debut in this year’s software updates. However, details regarding the agreement’s terms, its branding, or its exact implementation remain up in the air. Any potential announcement is not anticipated until June, in line with Apple’s routine developer conference. Additionally, Apple has been in conversation with OpenAI, the creators of ChatGPT, about incorporating its technology, the report adds.
Requests for comments from Apple, Google (an Alphabet subsidiary), and OpenAI were not immediately answered. Following the news, Alphabet’s stock saw a 3% increase in pre-market trading in the U.S., while Apple shares experienced a slight 0.5% rise.
A partnership could significantly benefit Google by extending its AI services across Apple’s vast user base of over 2 billion devices. This move is seen as part of Google’s strategy to compete with Microsoft-supported OpenAI. In teaming up with Apple, this partnership could potentially soothe investor worries regarding the speed of its AI advancements, particularly following a 10% decline in stock value this year. This setback has led to Apple relinquishing its position as the world’s top-ranking company in terms of value.
Google and Apple have maintained a longstanding agreement making Google the default search engine on Safari, Apple’s web browser. A new agreement focusing on AI could help Alphabet counter the perceived threat from AI services like ChatGPT to its search business. However, this deal might also draw increased attention from U.S. regulators, who have previously accused Google of anti-competitive practices for paying Apple to remain the default search engine.
In January, Google formed a partnership with Samsung, Apple’s competitor, to introduce its Gemini AI technology to the Galaxy S24 smartphone series. This move is part of Google’s ambition to promote the adoption of Gemini following initial rollout challenges. Last month, Apple CEO Tim Cook mentioned significant investments in generative AI by Apple, promising more details on how the technology will be utilized later in the year.
Despite planning to develop its own AI models for new features in the upcoming iOS 18, Apple is exploring partnerships for generative AI capabilities, including image creation and essay writing based on user prompts, as per the Bloomberg report.
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