After a news that Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) was in talks to make its Gemini AI chatbot available on the iPhone, investors enjoyed the stock this morning.
Even though conversations are ongoing and no contract has been announced, Alphabet shares rose on Monday as investors believed it was an indication that the business was overcoming its AI technology's unfavorable publicity and other issues. The stock rose 7.8%, approaching an all-time high, while Apple rose 3% around midday ET.
According to the report, Alphabet's market cap rose over $100 billion today. Investors should note that the news is unconfirmed.
this morning that Apple is in talks to license Gemini for iPhone software updates later this year, but a deal is unlikely until June, when Apple has its annual developer conference.
Apple has also discussed employing OpenAI's generative AI approach, thus an agreement with Alphabet is currently uncertain.
The announcement doesn't impact Alphabet's strategy due to partnership uncertainties. After Bard failed to launch and the redesigned Gemini chatbot was criticized, a partnership with Apple would be a huge step forward for Google, which has struggled with its AI strategy.
Alphabet has partnered with Samsung to incorporate its generative AI technology on the latest Galaxy phones, demonstrating chatbot adoption.
Alphabet's new AI technology may not generate cash for years, but building long-term relationships is crucial. Watch for additional news on the two tech leaders' deal, which could influence Alphabet stock
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