iPhone maker, Apple Inc. is reportedly in talks with Google to build Google’s Gemini artificial intelligence engine into the iPhone.
According to a Bloomberg report citing people familiar with the situation, the discussion is setting the stage for a blockbuster agreement that would shake up the AI industry.
The two companies are said to be in active negotiations to let Apple license Gemini, Google’s set of generative AI models, to power some new features coming to the iPhone software this year, the sources said. Apple also recently held discussions with OpenAI and has considered using its model, according to the people.
What the deal means
If a deal between Apple and Google comes to fruition, it would build upon the two companies’ search partnership.
- For years, Alphabet Inc.’s Google has paid Apple billions of dollars annually to make its search engine the default option in the Safari web browser on the iPhone and other devices.
- The two parties haven’t decided the terms or branding of an AI agreement or finalized how it would be implemented, the people said.
- An Apple-Google deal on generative AI would extend one of technology’s most longstanding partnerships.
- A deal would give Gemini a key edge with billions of potential users. But it also may be a sign that Apple is not as far along with its AI efforts as some might have hoped and threatens to draw further antitrust scrutiny of both companies.
Apple’s AI promise coming to reality
Apple’s chief executive, Tim Cook, has promised investors that the company will introduce new generative AI capabilities this year. The company’s smartphone rivals, Samsung and Google, have already added Gemini to their newest devices to edit videos and summarize audio recordings.
Since Apple introduced the iPhone in 2007, Google has been a critical contributor to the device’s success.
It initially provided Google Maps for navigation and the default search engine on the iPhone’s Safari browser, now a lucrative agreement for which Google pays Apple more than $18 billion a year.
Apple is preparing new capabilities as part of iOS 18 — the next version of the iPhone operating system — based on its own AI models. But those enhancements will be focused on features that operate on its devices, rather than ones delivered via the cloud.
So, Apple is seeking a partner to do the heavy lifting of generative AI, including functions for creating images and writing essays based on simple prompts.
