In a surprising turn of events, Apple is reportedly in discussions with Google to incorporate the tech giant’s Gemini artificial intelligence engine into the iPhone. The talks center around licensing Gemini for new features slated to arrive in iPhone software later this year. While the specifics of the agreement, including branding and implementation details, are still up in the air, the potential implications of this collaboration are massive.
Alphabet, Google’s parent company, saw its shares surge by 5% in premarket U.S. trading following the news, while Apple experienced a more modest 0.5% increase. This move could see Google’s AI services, including Gemini, reach over 2 billion active Apple devices, marking a significant expansion for the search giant. It could also help Google catch up with Microsoft-backed OpenAI in the AI race.
The negotiations come on the heels of Apple’s recent discussions with OpenAI about utilizing its ChatGPT model, indicating a broader push by Apple to enhance its AI capabilities. This is particularly crucial for Apple, which has faced criticism for the slow rollout of AI apps and services and has seen a 10% decline in its shares this year.
The potential partnership with Google, however, may not be without its challenges. U.S. regulators have already scrutinized Google for allegedly paying Apple billions of dollars to maintain its search engine monopoly on Apple’s Safari web browser. A deeper collaboration through AI integration could invite even closer inspection from regulatory bodies.
For Google, this collaboration could help address concerns about the slow adoption of its AI services and bolster its position in the AI market. The tech giant has been looking to expand the use of Gemini, as evidenced by its recent partnership with South Korea’s Samsung to deploy genAI technology in the Galaxy S24 series of smartphones.
Apple CEO Tim Cook has hinted at significant investments in generative AI, with plans to unveil more about its AI strategy later this year. While Apple may still use its own AI models for certain capabilities in its upcoming iOS 18, the partnership with Google could be a game changer for features like image creation and essay writing based on simple prompts.
As the tech industry continues to push the boundaries of AI, the collaboration between Apple and Google could pave the way for groundbreaking innovations in AI-powered features for the iPhone and beyond.
(Source: Bloomberg | Investor’s Business Daily)
