According to Bloomberg News, Apple (AAPL.O) is reportedly in talks with Google to integrate the Gemini artificial intelligence (AI) engine into the iPhone. Apple has also reportedly discussed the use of OpenAI, which is backed by Microsoft (MSFT.O), and has considered using its model. While Apple is developing its own AI models for its upcoming iPhone iOS 18, it is seeking a partner to power generative AI features that include creating images and writing essays based on simple prompts. However, the terms and branding of any AI agreement between Apple and Google have not been decided yet.
It is also unlikely that any deal will be announced until June. Apple, Google, and OpenAI have yet to comment on the report. Compared to Microsoft and Google, Apple has been slower in rolling out generative AI, which can generate human-like responses to written prompts. However, last month, Apple CEO Tim Cook said that the company plans to disclose more about its plans to put generative AI to use later this year. He also stated that the company was investing “significantly” in the area. Meanwhile, Google has already partnered with Samsung (005930.KS) to deploy multiple generative AI technology products in the Galaxy S24 series of smartphones.
It is worth noting that Apple and Google already have an existing deal that allows Google to be the default search engine on Apple’s Safari web browser. However, the deal has been under regulatory scrutiny due to allegations that Google unlawfully stifled competition by paying billions of dollars to Apple and other business partners to ensure its search engine would be the default on most phones and web browsers.