Apple is in talks with Google over a deal to use its Gemini artificial intelligence engine in iPhones, Bloomberg reports.
Google's generative AI model suite, Gemini, could be integrated into iPhone software later this year, the news agency reported, citing unnamed people familiar with the matter. The talks follow similar discussions about the use of AI models with his Microsoft-backed OpenAI, creator of ChatGPT.
Apple has come under pressure this year for appearing to lag other big technology companies in the race to profit from advances in AI.Partnership with Alphabet
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While Google may help the tech giants catch up, it could also suggest that Google itself is not making quality AI advances. Apple is working on developing its own software, but it is focused on use on its hardware rather than the cloud, the report said.
Apple shares rose 2% in early trading to $176.21. Google's parent company Alphabet jumped 6.8% to $150.89, making it one of the best-performing stocks in the U.S. market.
S&P500
For that day.
As the session began, Apple was down 10% since Jan. 1, while most of the other so-called Magnificent 7 stocks that drove the market's gains last year performed better.microsoft
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JAS, which owns half of OpenAI, is up 11% this year and Alphabet is up 1.1%.Nvidia
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The AI ​​semiconductor specialist has soared 77%.
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“This is a major win for Google as it enters Apple's ecosystem and has access to Cupertino's golden installed base, which obviously comes with significant licensing fees,” Wedbush's team led by Dan Ives wrote in a note. .
Apple, Google and OpenAI did not immediately respond to requests for comment Monday morning outside of normal business hours.
If Apple were to partner with Google on AI, it would continue Apple's long-standing partnership with Google to make it the default search engine on its devices. This attracted the attention of the US Department of Justice, which filed a lawsuit accusing Google of illegally controlling online advertising.
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Email Brian Swint at brian.swint@barrons.com.