In what could be a pivotal move in the tech industry, Apple is reportedly in advanced negotiations with Google to bring the latter’s innovative Gemini AI models to the iPhone. According to Bloomberg, this potential collaboration could significantly alter Apple’s AI strategy and impact the competitive landscape of AI technology in mobile devices.
The news of these discussions has already had a notable effect on the stock market, with Google’s share price jumping over six percent and Apple’s shares rising by 2.5 percent. The integration of Google’s Gemini AI into the iPhone would represent a substantial shift for Apple, which has faced criticism for lagging behind its tech giant rivals in AI development.
The partnership is expected to feature prominently in Apple’s next iOS operating system release and is likely to be a key component of the upcoming iPhone model, slated for release later this year. This collaboration would build on the existing relationship between Apple and Google, which already includes a lucrative search engine partnership. This current arrangement involves Google paying Apple tens of billions of dollars annually to secure a prominent position for its search engine on the iPhone platform.
However, this longstanding search engine agreement is currently under scrutiny due to a historic lawsuit from the US Department of Justice, alleging antitrust law violations. In the backdrop of these legal challenges, the potential AI partnership could open new avenues for both tech giants.
Bloomberg also reported that Apple had been in talks with OpenAI, the creators of ChatGPT, regarding generative AI partnerships, although specifics of these discussions were not disclosed.
Tim Cook, Apple’s CEO, recently hinted at significant upcoming developments in AI. However, some industry observers might view the company’s decision to collaborate with external partners as a surprising move. Colin Sebastian, an analyst at Baird, suggested that this deal could essentially give Google a dominant position in generative AI across mobile devices, encompassing both Android and iOS platforms.
Sebastian also noted that this partnership might indicate Apple’s current limitations in catching up with generative AI leaders in the near term, particularly in the upcoming generation of devices. This potential alliance between Apple and Google signifies a critical juncture in the evolution of AI in mobile technology, underscoring the growing importance of AI in shaping future consumer electronics and the tech industry at large.
