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 talks revolve around licensing Gemini for new features expected to be introduced in iPhone software later this year. However, details such as the terms of the agreement or how the AI would be implemented remain undecided.
Shares of Alphabet, Google’s parent company, surged more than 6% in early US trading, while Apple saw a 2.5% increase.
Any potential deal is unlikely to be announced before Apple’s annual developer conference in June. The report also mentioned recent discussions between Apple and OpenAI, the creator of ChatGPT, regarding potential usage of its model.
Apple, Google, and OpenAI have not responded to requests for comment from Reuters.
A partnership between Apple and Google could allow the latter to expand its AI services to over 2 billion active Apple devices, potentially aiding Google’s efforts to compete with OpenAI, backed by Microsoft.
The partnership could address concerns about Apple’s slow adoption of AI applications, which have led to a decline in its shares this year.
While Google and Apple have had a long-standing partnership, particularly with Google being the default search engine on Apple’s Safari browser, an AI collaboration could raise antitrust concerns in the US.
Daniel Ives, an analyst at Wedbush, sees the potential partnership as a significant win for Google to access Apple’s vast user base, with a substantial license fee expected.
Apple has been investing heavily in generative AI, with CEO Tim Cook indicating plans to utilize the technology more extensively in the near future.
According to Bloomberg, while Apple intends to use its AI models for certain capabilities in iOS 18, it seeks a partner to power genAI features, such as image creation and essay writing based on simple prompts.
