Alphabet Shares Higher On Report Apple In Talks To License Gemini For iPhones

Apple is in “active negotiations” to equip iPhones with Google’s generative artificial intelligence engine, Bloomberg News reported on Monday, citing people familiar with the situation. The possible deal signals Apple’s AI technology remains inferior to Google’s suite of generative AI tools. 

“The two companies are in active negotiations to let Apple license Gemini, Google’s set of generative AI models, to power some new features coming to the iPhone software this year,” said the people, adding that Apple also recently held talks with OpenAI. 

The report said while Apple and Google talks continue, a deal might not be reached until June, when the iPhone maker plans to hold its annual Worldwide Developers Conference. There is even a possibility that an agreement between the two mega-tech giants will not materialize, and/or Apple will seek multiple partners to build a chatbot. 

Alphabet’s Class A shares were 3.5% higher in premarket trading. 

“A deal would give Gemini a key edge with billions of potential users. But it also may be a sign that Apple isn’t as far along with its AI efforts as some might have hoped — and threatens to draw further antitrust scrutiny of both companies,” Bloomberg said. 

However, the report said, “the two parties haven’t decided the terms or branding of an AI agreement or finalized how it would be implemented.”

Last month, Apple CEO Tim Cook said the company sees “incredible breakthrough potential for generative AI, which is why we’re currently investing significantly in this area.” 

“We believe it will unlock transformative opportunities for our users when it comes to productivity, problem-solving and more,” Cook said, adding a major AI announcement was planned for later this year. 

The big question is, if Alphabet is forced to de-woke-ify Gemini too.much after it’s last incarnation, will Cook and his cronies still want the AI on their phones?