Gemini AI: Apple is reportedly engaged in discussions with Google to integrate Google’s Gemini artificial intelligence engine into future iPhone software, according to a report.
Should the negotiations be successful, this move would significantly enhance Google’s Gemini AI model. Additionally, it may suggest that Apple’s own endeavors to develop AI capabilities are progressing slower than anticipated by investors.
Sources informed Bloomberg that Apple has been conducting tests on its own large language model, codenamed Ajax, since early last year. However, Apple’s AI tools are purportedly not as advanced as those developed by competitors such as Google.
In a separate development, Google’s Gemini AI model faced controversy over claims that its image generation tool inaccurately portrayed the race of historical figures. This led Google to temporarily take the tool offline after its launch in February.
Apple’s shares rose by 1% in premarket trading, having previously fallen by 10% year-to-date, while Google’s parent company, Alphabet, saw a 3% increase in premarket trading, with a 1% overall increase in 2024 thus far.
MarketWatch reached out to both Apple and Google for comment.
If a deal materializes, it would deepen the collaboration between these Silicon Valley giants. Currently, Google pays billions to Apple to ensure its search engine is the default on the Safari web browser.
However, such an agreement could attract scrutiny from competition regulators, who are already concerned about potential monopolistic behavior by the two companies. Google’s existing deal with Apple is under investigation by the U.S. Department of Justice, which alleges anti-competitive practices aimed at dominating the search engine market, where Google currently holds a 90% share.
According to the report, Apple has also explored partnerships with other AI developers, including OpenAI and Anthropic, as well as considering using multiple partners or alternative AI models instead of Google’s.
In essence, Apple’s iPhones may soon benefit from enhanced artificial intelligence capabilities through collaboration with Google’s Gemini AI engine. This partnership could yield new features for iPhone users, though specifics remain undisclosed. Additionally, Google reportedly held similar discussions with OpenAI, indicating potential broader implications for AI integration across various platforms.
While this collaboration could be advantageous for Google, granting access to a vast user base, it may signify challenges for Apple in the AI domain. The reported shortcomings of Apple’s Ajax model compared to Gemini highlight potential areas for improvement.
Although Apple has ambitious plans for its iOS 18 mobile platform, expected to be announced at the Worldwide Developers Conference (WWDC) in June, any announcement regarding the Apple-Google AI partnership may not occur before then.
Notably, other tech giants like Samsung have also incorporated AI features into their products, leveraging technologies developed by companies like Google. However, such collaborations have drawn regulatory scrutiny, similar to the existing Google-Apple partnership concerning default search engine arrangements. Further regulatory action may ensue should the proposed AI deal progress.
