Apple is reportedly negotiating with Google to integrate Google’s Gemini artificial intelligence engine into the iPhone.
As Bloomberg News, citing sources familiar with the matter, stated, discussions are focused on licensing Gemini for upcoming iPhone software features this year. However, specific terms, branding, and implementation methods remain undecided.
An announcement of any agreement is not expected until June, during Apple’s annual developer conference. Additionally, Apple has engaged in conversations with OpenAI, the creators of ChatGPT, about utilizing its technology.
Requests for comments from Apple, Google (owned by Alphabet), and OpenAI did not receive immediate responses. Alphabet shares saw a 3% increase in premarket trading in the U.S., while Apple shares rose by 0.5%.
A deal could significantly extend Google’s AI services to over 2 billion active Apple devices, aiding Google’s effort to compete with Microsoft-backed OpenAI. It may also address investors’ concerns about Apple’s cautious AI application rollout following a 10% share value decline this year.
The long-standing partnership between the companies, making Google the default search engine in Apple’s Safari browser, could be expanded with an AI collaboration, potentially helping Google counteract the perceived threat of ChatGPT to its search hegemony.
However, such an agreement could also draw intense regulatory scrutiny in the U.S., where Google faces lawsuits alleging anti-competitive practices, particularly its financial arrangements with Apple to secure its search engine dominance.
Google’s recent partnership with Samsung to incorporate its genAI technology in the Galaxy S24 series reflects its ambition to popularize Gemini after initial setbacks.
Bloomberg also reported that Apple intends to employ its proprietary AI models for certain features in the forthcoming iOS 18 but is exploring partnerships for genAI capabilities, including creative image generation and essay writing based on prompts.
