Apple is currently in advanced negotiations with Google to integrate Google’s powerful Gemini AI models into the iPhone.
If this deal goes through, it will address a significant question about Apple’s AI strategy, which has faced criticism for lagging behind its tech giant competitors.
Google’s share price has already surged by over six percent in response to this news, while Apple’s stock has also seen a boost of up to 2.5 percent.
According to Bloomberg, Apple aims to collaborate with Google for its upcoming iOS operating system release, which is expected to feature on the next iPhone later this year.
Notably, Apple and Google already have an existing search engine partnership, with Google paying Apple billions annually to maintain its prominent position as the default search engine on iPhones.
However, this long-standing search engine deal is currently under scrutiny due to a historic lawsuit filed by the US Department of Justice alleging antitrust violations.
READ ALSO: Google Restricts AI Chatbot Gemini From Answering Queries On Global Elections
In addition to Google, Apple has also explored discussions with OpenAI, the creator of ChatGPT, for potential collaboration on generative AI.
While some observers may be disappointed that Apple is partnering with others to enhance its AI capabilities, this move could have significant implications.
Colin Sebastian, an analyst at Baird, suggests that if the deal materializes, Google could essentially become the dominant force in generative AI on mobile devices (both Android and iOS).
However, it also raises question about whether Apple can catch up to the leaders in generative AI in the next generation of devices.
