Apple is in advanced negotiations with Google to integrate its Gemini generative artificial intelligence engine into iPhone phones, according to Bloomberg, citing anonymous sources familiar with the conversations. Apple wants to license the technology Google to use it in some of the AI features that will include their phones this year. The company led by Tim Cook has also held talks with OpenAI to use its GPT model, but the balance leans towards Gemini.
Details about the negotiations between both giants have not emerged. The deal would be a boost for Google in the generative artificial intelligence battle raging in the market between Google and OpenAI, as its technology could reach billions of potential users, given the large installed base of iPhone phones.
Analysts expect Apple to announce new artificial intelligence capabilities this year in its upcoming iOS 18 operating system. Experts believe the company will launch AI features that will run locally and be based on proprietary generative AI models. However, Apple needs a partner to provide a large natural language model in the cloud for many other AI functions that cannot run on the iPhone.
Samsung, which is a partner of Google in the Android ecosystem, has also chosen to use the search giant's generative AI model in its AI-enabled mobile phones. Apple is working on its own model, called Ajax, and is internally testing a chatbot that has been named Apple GPT. However, according to Bloomberg, Apple's generative AI technology is not on the same level as models from companies like Google and OpenAI.
However, This partnership between Google and Apple would face regulatory scrutiny, especially given that the US Department of Justice is investigating Google's search deal with Apple. Google has paid billions of dollars annually to Apple to be the default search engine in the Safari browser on the iPhone and other devices.
If negotiations come to fruition, the announcement could be made public in June during Apple's developer conference. Tim Cook, CEO of Apple, has promised a relevant announcement on AI this year. Wall Street is eagerly awaiting the company's steps in this area. Apple has recently canceled its electric car project and has redirected part of the resources allocated to the artificial intelligence area.
Shares of Alphabet, Google's parent company, rose almost 7% at the opening of Wall Street after learning of the negotiations with Apple.
