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Apple in Talks with Google's Gemini for iPhone AI Features

Apple is in discussions with Google to integrate the Gemini AI engine into the iPhone software. The terms of the agreement and implementation details have not been finalised. A potential deal could expand Google's AI services to over 2 billion active Apple devices.

Apple is reportedly in discussions to integrate Google's Gemini artificial intelligence engine into the iPhone, according to Bloomberg News. Citing sources familiar with the matter, the report states that the negotiations revolve around licensing Gemini for new features that will be introduced in the iPhone software later this year. However, the terms of the agreement and how it will be implemented have yet to be finalised.


The news of these talks has had a positive impact on the stock market, with Alphabet shares surging over 6% in early U.S. trading, while Apple saw a 2.5% increase. It is expected that any potential deal will not be announced until June, when Apple holds its annual developers conference. Additionally, Apple has also been in discussions with OpenAI, the creator of ChatGPT, about utilising its model.


If a deal is reached between Apple and Google, it could open up new opportunities for Google to expand the reach of its AI services to over 2 billion active Apple devices. This would be a significant boost for Google as it seeks to catch up with Microsoft-backed OpenAI in the AI market. Furthermore, it could help alleviate concerns among investors about Apple's slow rollout of AI applications, which has contributed to a decline in its shares this year.


Apple and Google have had a longstanding partnership, with Google serving as the default search engine on Apple's Safari web browser. A collaboration with Google's Gemini AI engine could help Google address concerns that services like ChatGPT pose a threat to its search dominance. However, such an agreement may also attract increased scrutiny from U.S. regulators, who have previously sued Google for alleged anticompetitive practices.


Daniel Ives, an analyst at Wedbush, commented on the potential partnership, stating, "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." He also highlighted the significance of Google gaining access to Apple's vast user base and the potential financial benefits that come with it.


In January, Google partnered with Samsung, a competitor of Apple, to incorporate its genAI technology into the Galaxy S24 series of smartphones. This move aimed to boost the adoption of Gemini after some initial setbacks during its rollout.


Apple CEO Tim Cook recently announced that the company is making significant investments in generative AI and will provide more details about its plans later this year. The Bloomberg report suggests that while Apple intends to use its own AI models for certain capabilities in the upcoming iOS 18, it is seeking a partner to power genAI features, including image creation and essay writing based on simple prompts.

 
  • Apple is in discussions with Google to integrate the Gemini AI engine into the iPhone software.

  • The terms of the agreement and implementation details have not been finalised.

  • A potential deal could expand Google's AI services to over 2 billion active Apple devices.


Source: REUTERS

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