Google already pays Apple tens of billions of dollars annually to feature its search engine prominently on the iPhone as part of their search engine relationship
Bloomberg reported on Monday that Apple and Google are far into the negotiation process to include Google's robust Gemini AI models inside the iPhone.
If the rumor is true and a deal is finalized, it would put an end to speculation regarding the iPhone maker's artificial intelligence strategy, which has been accused of falling behind its tech giant competitors.
The revelation caused Google's share price to surge by more than 6%. A gain of up to 2.5% was recorded by Apple.Bloomberg reports that Apple is reportedly in talks to form a partnership with Google to develop the iOS operating system for the next iPhone, which is scheduled to be released later this year.
Google already pays Apple tens of billions of dollars annually to feature its search engine prominently on the iPhone as part of their search engine relationship. The US Department of Justice has filed a historic lawsuit against that long-running search engine deal, claiming that it violates antitrust law.
Without going into further detail, Bloomberg stated that Apple had also met with OpenAI, the company behind ChatGPT, to discuss forming a partnership in generative artificial intelligence.
Last month, Apple CEO Tim Cook promised big AI upgrades, but some may be upset that the tech giant is partnering with others to make these announcements.“Any hypothetical deal with Apple could mean they essentially 'own' generative AI on mobile devices (Android + iOS),” commented Colin Sebastian of Baird.
"It also means Apple may not be in a position to catch-up to GenAI leaders, at least not in the next generation of devices," according to him.
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