The source stated that the talks are about licensing Gemini for certain new capabilities that will be added to the iPhone OS this year, but it did not specify the conditions, branding, or implementation strategy of an AI deal.
It is doubtful that an agreement would be revealed until June, when Apple is scheduled to have its annual developer conference. Additionally, the manufacturer of the iPhone recently conducted discussions with the creator of ChatGPT.
The study quotes OpenAI about the use of their model.
Requests for comment from Reuters were not immediately answered by Apple, Google, which is controlled by Alphabet, or OpenAI.
Apple saw a 0.5% increase in premarket U.S. trade, while Alphabet’s shares increased by 3%.
In a drive to overtake Microsoft-backed OpenAI, Google may be able to extend the usage of its AI services to over 2 billion active Apple devices through a prospective agreement between the two companies.
Additionally, it could help calm investor concerns about Apple’s sluggish AI app roll-out. This year, a 10% drop in the company’s share price has cost Apple its position as the most valuable company in the world.
With a genAI relationship, the Alphabet subsidiary may be able to allay concerns that services like ChatGPT will undermine its dominant position in search. The companies have been in partnership for years, and as a result, Google is the default search engine for Apple’s Safari web browser.
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However, the deal may also draw closer examination from US authorities, who have already filed a lawsuit against Google on the grounds that it illegally suppressed competition by giving Apple billions of dollars to keep its search monopoly.
As part of its efforts to increase the usage of Gemini following some setbacks during its roll-out, Google teamed up with Samsung, Apple’s competitor, in January to integrate its genAI technology into the South Korean company’s Galaxy S24 series of smartphones.
Tim Cook, the CEO of Apple, stated last month that the business was “significantly” investing in generative AI and that further information on how the technology will be used would be released later in the year.
According to the Bloomberg article, Apple is looking for a partner to power genAI features, such as the ability to create photos and write essays in response to basic prompts, although it plans to employ its own in-house AI models for certain new capabilities in its upcoming iOS 18.