Apple in Talks with Google to Integrate Gemini AI Engine into iPhone Software
A recently published report has revealed that Apple is currently engaged in ongoing discussions with Google regarding the integration of the company's Gemini artificial intelligence engine into forthcoming software updates for the iPhone.
Potential Implications and Progress Comparison: Should these negotiations come to fruition, such an agreement would signify a notable advancement for Google's Gemini AI model. However, it could also suggest that Apple's efforts to develop its own AI capabilities are progressing at a slower pace than anticipated by investors.
EXCLUSIVE: Apple is in talks to build Google’s Gemini AI engine into the iPhone in a potential blockbuster deal.
Here's what we know so far https://t.co/e3XYmn05vL pic.twitter.com/2CMZ1PveKg
— Bloomberg (@business) March 18, 2024
Source: Twitter/Bloomberg
Apple’s AI Development Efforts
According to sources cited by Bloomberg, Apple has been conducting trials of its own large language model, internally referred to as Ajax, since early last year. Nevertheless, the AI tools developed by the California-based tech giant are reported to lag behind those created by competitors like Google.
Controversies Surrounding Gemini AI Model
On the other hand, Google's Gemini AI model has encountered its own set of controversies. Allegations arose regarding its image generation tool inaccurately depicting the race of historical figures, leading to Google temporarily removing the tool from circulation shortly after its launch in February.
Market Response and Regulatory Scrutiny
Ahead of market opening, Apple's shares saw a 1% increase, following a recent 10% decline since the start of the year. Meanwhile, shares of Google's parent company, Alphabet, experienced a 3% rise in premarket trading, building on a 1% increase in 2024 thus far.
Potential Regulatory Concerns
Nevertheless, should a deal materialize between Apple and Google, it could attract further scrutiny from competition regulators due to concerns about potential monopolistic behavior by the two tech giants.
Existing Agreements and Alternative Options
The current deal between Google and Apple is already under scrutiny by the U.S. Department of Justice, alleging anti-competitive practices. Additionally, Apple has reportedly explored alternative options, including discussions with OpenAI, to potentially utilize its AI model as an alternative to Google's Gemini.
Market Response and Continued Negotiations
Alphabet Class A shares experienced a 4.5% increase in early premarket trading, while Apple shares rose by 0.34%. These gains followed reports indicating ongoing negotiations between Alphabet and Apple regarding the potential use of Gemini for upcoming iPhone features.
Continuing Discussions and Uncertain Terms
As discussions progress, the terms and branding of an AI agreement between Apple and Google remain undecided. Further updates are expected as negotiations evolve, potentially impacting the future landscape of AI integration in Apple's ecosystem.
Confirmation and Verification
While CNBC has not independently verified the Bloomberg report, MarketWatch reached out to both Apple and Google for comment on the matter.
Final Considerations and Industry Impact
Ultimately, a potential collaboration between Apple and Google to integrate Gemini into iPhone software could reshape the landscape of AI development and usage in consumer technology, with implications for both companies and the broader market.
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