Bloomberg News said on Monday, mentioning people acquainted with the case, that Apple is in discussions to build Google’s Gemini artificial intelligence engine into the iPhone.
Negotiating New Features:
Apple is reportedly in talks with Alphabet’s Google and OpenAI to license Gemini for incorporating new features into the iPhone software set to debut this year. However, details regarding the agreement’s terms, branding, and implementation methods are yet to be finalized.
Market Response and Timing:
Following reports of the negotiations, Alphabet’s shares surged by over 6% in early U.S. trading, while Apple witnessed a 2.5% increase.
However, any potential deal announcement is unlikely before June, coinciding with Apple’s annual developer conference. Recent discussions also involved ChatGPT-maker OpenAI regarding its model’s utilization.
Responses from Companies:
While reports have surfaced regarding the negotiations, Apple, Alphabet-owned Google, and OpenAI have refrained from providing immediate comments or responses to requests for clarification from Reuters.
Potential Impact and Partnership History:
If the deal is finalized, Google could extend its AI services to more than 2 billion active Apple devices, potentially bolstering its competition with Microsoft-backed OpenAI.
This collaboration may also address concerns among investors regarding Apple’s slower adoption of AI applications, contributing to recent declines in its share value. Notably, Apple and Google have maintained a long-standing partnership, with Google serving as the default search engine on Apple’s Safari web browser.
Regulatory Considerations:
However, the potential agreement may invite scrutiny from U.S. regulators due to ongoing lawsuits against Google over alleged anti-competitive practices.
These include accusations of making substantial payments to Apple to uphold its search monopoly, which could complicate the regulatory landscape surrounding the collaboration.
