Apple is discussing a potential deal to integrate Google’s artificial intelligence platform Gemini into the iPhone, Bloomberg reported Monday, in what could be a major deal between the rival tech giants and impact the wider AI industry.
Apple is reportedly in talks to integrate Google’s Gemini into its next software update for iPhone.
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Key Takeaways
- According to Bloomberg, Apple is holding “active negotiations” to license Gemini’s AI models to integrate its generative AI features into an upcoming software update to the iPhone later this year.
- Apple’s discussions with Google follow similar talks it held with Microsoft-backed OpenAI—the maker of ChatGPT and DALL-E, the report adds.
- Apple will release iOS 18—the latest version of its mobile operating system—later this year and it is expected to integrate several AI features, including a more powerful version of the digital assistant Siri.
- While the iPhone maker is reportedly working on its own AI tools, which will run locally on its devices, the Gemini integration will allow it to tap into Google’s cloud-based and more complex generative AI services like a chatbot or image generator.
- According to the report, the deal is yet to be finalized, and if it falls through, Apple may end up choosing an alternative AI provider like OpenAI or Anthropic.
Crucial quote
During Apple’s earnings call last month, CEO Tim Cook said: “In terms of generative AI… we’ve got some things that we are incredibly excited about that we’ll be talking about later this year.” He later added: “Let me just say that I think there’s a huge opportunity for Apple with generative AI and with AI, without getting into many more details or getting out ahead of myself.”
Key Background
While the two companies are competitors in the smartphone market, they have for years had a multibillion-dollar deal to keep Google as the default search engine on Apple devices. That deal has come under significant scrutiny in the past year as Google battles a landmark antitrust case in the U.S. The search deal has allowed Google to maintain its almost uncontested dominance in search and a similar AI deal is likely to give it an edge over the likes of Microsoft, OpenAI and Meta. Because of this any potential deal between the two companies is likely to draw more scrutiny from regulators around the world.
Big number
$18 billion. That is the reported amount of money Google pays Apple each year to remain as the default search engine on iPhones.
Tangent
Earlier this year, Samsung announced its new flagship Galaxy G24 series of smartphones will use Gemini to power several AI features. Gemini is being used to power certain components of the phone’s text messaging, notes, voice recorder and keyboard apps. This integration included both the cloud-based Gemini Pro model and the smaller Gemini Nano model that runs locally on the phone.
This article was first published on forbes.com and all figures are in USD.
