Apple is reportedly in discussions to incorporate Google’s Gemini artificial intelligence engine into the iPhone, as per Bloomberg News sources familiar with the matter. The negotiations are centered around licensing Gemini for upcoming features in iPhone software, although specifics regarding the terms, branding, or implementation of the AI agreement remain undecided. While Apple, Alphabet-owned Google, and OpenAI have yet to comment on the matter, Alphabet shares surged over 6% in early U.S. trading, with Apple also experiencing a 2.5% increase.
The potential collaboration could significantly expand Google’s AI services to over 2 billion active Apple devices, presenting an opportunity for the search giant to bolster its AI efforts and compete with Microsoft-backed OpenAI. Moreover, discussions with OpenAI suggest Apple’s ongoing efforts to enhance its AI capabilities, addressing concerns from investors about the slower adoption of AI apps and services. However, any formal announcement regarding the deal is not expected until Apple’s annual developer conference in June.