Apple has reportedly begun discussions to integrate Google’s Gemini artificial intelligence (AI) engine into the iPhone, according to Bloomberg News, with sources saying the negotiations centre around licensing Gemini for upcoming features in the iPhone software slated for release later this year.
While the specifics of the agreement, including terms and branding, remain undecided, the prospect has already generated significant market reactions. Alphabet, which owns Google, has seen its shares surge over 6% in early U.S. trading, while Apple saw a 2.5% increase.
Although any potential deal is unlikely to be finalised before Apple’s annual developer conference in June, the company has also engaged in talks with OpenAI, the maker of ChatGPT, about using its model, Bloomberg reported.
A partnership between Apple and Google could enable Google to expand its AI services to over 2 billion active Apple devices, potentially closing the gap with OpenAI. Moreover, it could address investor concerns regarding Apple’s comparatively slow adoption of AI applications, which has contributed to a recent decline in its share value.
However, such an agreement may invite heightened scrutiny from U.S. regulators, given ongoing antitrust concerns surrounding Google’s dominance in search. The partnership could potentially face regulatory challenges similar to those encountered by Google’s longstanding arrangement with Apple, which sees Google as the default search engine on Apple’s Safari web browser.
This news follows Google’s recent collaboration with Apple rival Samsung to deploy its genAI technology in the Galaxy S24 series of smartphones. Apple CEO Tim Cook previously stressed the company’s significant investments in generative AI, with plans to unveil further details later this year.
While Apple reportedly intends to leverage its own AI models for certain capabilities in the upcoming iOS 18, partnering with Google for genAI features could enhance functionalities such as image creation and essay writing based on simple prompts, as per the Bloomberg report.
