Apple Inc. is in talks to build Google’s Gemini artificial intelligence engine into the iPhone, according to people familiar with the situation, setting the stage for a blockbuster agreement that would shake up the AI industry. 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, who asked not to be identified because the deliberations are private. Apple also recently held discussions with OpenAI and has considered using its model, according to the people. If a deal between Apple and Google comes to fruition, it would build upon the two companies’ search partnership. For years, Alphabet Inc.’s Google has paid Apple billions of dollars annually to make its search engine the default option in the Safari web browser on the iPhone and other devices. The two parties haven’t decided the terms or branding of an AI agreement or finalized how it would be implemented, the people said. Alphabet shares rose 4.5% in premarket trading on Monday before New York exchanges opened. If premarket gains hold, it will be the biggest intraday gain since Dec. 7. The stock had closed at $141.18 on Friday. Apple, which previously closed at $172.62, was little changed in early 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. Apple is preparing new capabilities as part of iOS 18 — the next version of the iPhone operating system — based on its own AI models.
Full exclusive : Apple and Google are in active talks to use Gemini to power some new iPhone features in 2024; Apple also held talks with OpenAI to use its models.
