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Apple is in talks to integrate Google’s Gemini artificial intelligence engine into the iPhone, according to people familiar with the situation, setting the stage for a blockbuster deal that would shake up the artificial intelligence industry.
The two companies are in active negotiations to let Apple license Gemini, Google’s suite of generative artificial intelligence models, to power some new features coming to iPhone software this year, said the people, who asked not to be identified. identified because the deliberations are private. Apple also recently held talks with OpenAI and has considered using its model, according to the people.
If a deal between Apple and Google comes to fruition, it would be based on the two companies’ search partnership. For years, Google has paid Apple billions of dollars a year to make its search engine the default option in the iPhone’s Safari web browser. The two sides have not decided on the terms or branding of an AI deal or finalized how it would be implemented, the people said.
Alphabet shares rose as much as 7.4% on Monday when markets opened in New York. It was the biggest intraday gain since February 2, 2023. Apple rose 2%.
A deal would give Gemini a key advantage with billions of potential users. But it may also be a sign that Apple is not as far along in its AI efforts as some might have hoped, and threatens to draw greater antitrust scrutiny of both companies.
Apple is preparing new capabilities as part of iOS 18 based on its own AI models. But those improvements will focus on features that work on your devices, rather than those delivered through the cloud. That’s why Apple is looking for a partner to do the heavy lifting of generating AI, including features for creating images and writing prompt-based essays.
Spokespeople for Apple and Google declined to comment. OpenAI did not immediately respond to a request for comment. Since early last year, Apple has been testing its own Big Language Model, the technology behind generating AI, codenamed Ajax. But Apple’s technology remains inferior to tools from Google and other rivals, according to the people, making a partnership seem like the best option.
The two companies are in active negotiations to let Apple license Gemini, Google’s suite of generative artificial intelligence models, to power some new features coming to iPhone software this year, said the people, who asked not to be identified. identified because the deliberations are private. Apple also recently held talks with OpenAI and has considered using its model, according to the people.
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If a deal between Apple and Google comes to fruition, it would be based on the two companies’ search partnership. For years, Google has paid Apple billions of dollars a year to make its search engine the default option in the iPhone’s Safari web browser. The two sides have not decided on the terms or branding of an AI deal or finalized how it would be implemented, the people said.
Alphabet shares rose as much as 7.4% on Monday when markets opened in New York. It was the biggest intraday gain since February 2, 2023. Apple rose 2%.
A deal would give Gemini a key advantage with billions of potential users. But it may also be a sign that Apple is not as far along in its AI efforts as some might have hoped, and threatens to draw greater antitrust scrutiny of both companies.
Apple is preparing new capabilities as part of iOS 18 based on its own AI models. But those improvements will focus on features that work on your devices, rather than those delivered through the cloud. That’s why Apple is looking for a partner to do the heavy lifting of generating AI, including features for creating images and writing prompt-based essays.
Spokespeople for Apple and Google declined to comment. OpenAI did not immediately respond to a request for comment. Since early last year, Apple has been testing its own Big Language Model, the technology behind generating AI, codenamed Ajax. But Apple’s technology remains inferior to tools from Google and other rivals, according to the people, making a partnership seem like the best option.