Reports suggest Apple is in discussions to integrate Google’s Gemini AI engine into iPhones, potentially enhancing user experience with advanced AI features. While negotiations are ongoing, both companies have remained tight-lipped, but investor interest is evident, reflecting the potential impact of such collaboration on AI services and market dynamics.
18 March 2024 – According to Bloomberg News, Apple (AAPL.O) is reportedly in discussions to incorporate Google’s Gemini artificial intelligence engine into its iPhone devices. These negotiations center around licensing Gemini for upcoming features in iPhone software, although specifics regarding terms, branding, or implementation methods remain undecided.
The potential agreement, which may not be finalized until Apple’s annual developer conference in June, signals Apple’s interest in leveraging advanced AI capabilities to enhance user experience. Additionally, recent discussions with OpenAI indicate Apple’s exploration of various AI models to bolster its technological offerings.
Both Apple and Google’s parent company Alphabet (GOOGL.O) declined to comment on the matter. However, premarket trading saw a 3% rise in Alphabet shares and a 0.5% increase in Apple shares, reflecting investor interest in the potential collaboration. Should a deal materialize, Google stands to extend its AI services to over 2 billion active Apple devices, positioning itself to compete with Microsoft-backed OpenAI.
Despite Apple’s recent decline in share value, attributed in part to concerns over the slow integration of AI applications, the prospective partnership underscores its commitment to advancing AI technologies. The collaboration with Google may also help alleviate apprehensions regarding the pace of AI app deployment by Apple.
However, such an agreement could draw increased scrutiny from U.S. regulators, given ongoing antitrust concerns surrounding Google’s dominance in the search market. Notably, Google’s collaboration with Samsung to deploy Gemini technology in Galaxy S24 smartphones underscores its efforts to expand Gemini’s reach following initial challenges during its roll-out.
Apple CEO Tim Cook’s recent affirmation of significant investments in generative AI indicates the company’s dedication to advancing AI capabilities, with plans to unveil further details later this year. As reported, Apple aims to incorporate its own AI models alongside Google’s Gemini engine for new functionalities within iOS 18, including image creation and essay writing based on simple prompts. – ref: Reuters
