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Apple (AAPL) is in talks with Google-father Alphabet (GOOGLE) on licensing its “Gemini” AI training model for use on iPhones, according to a report. Google shares rose on the news, which follows controversy over Google’s Gemini generation AI chatbot.
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About him stock market today, Google shares rose 6.6% to 150.54 in morning trading. Apple shares rose 2.6% to 177.10.
Apple would use Gemini generative AI models to power new iPhone software features. Bloomberg reported.
New generative AI models process “prompts,” such as Internet search queries, that describe what a user wants to obtain. Generative AI technologies create text, images, videos, and computer programming code on their own.
Apple Stock: Gemini License Cost?
At Bank of America, analyst Wamsi Mohan said a deal could be good for both Google and Apple.
“Google Gemini has multiple versions (Ultra, Pro and Nano) that can run in the cloud and on the device and vary in complexity and capability,” Mohan said. “It is not yet clear whether Apple will choose to take advantage of a cloud-based model that could potentially have higher latency than the on-device option.”
He added: “Given Apple’s installed base of 2.2 billion iOS devices, a licensing agreement based on volume of usage could end up being a very significant cost for Apple, but a flat license for any cloud-based usage would not be economical for partners. “Fixed charging on a device-by-device basis seems most likely, but its capabilities would be more limited. “Apple could also use this as an approach to accelerate time to market, while continuing to develop internal technologies.”
On February 8, Google announced a new Gemini application on Android mobile operating system as well as a Gemini option within the existing Google iOS app.
‘Big win’ for Google stock
“This is a big win for Google to enter the Apple ecosystem and gain access to Cupertino’s gold installed base with clearly a significant licensing fee attached,” Wedbush analyst Daniel Ives said in a report.
He added: “For Apple, this will give them the foundation and technology plan to double down on the AI features currently being developed at Apple Park to ensure the iPhone 16 is a potential game-changer around AI functionality.”
Additionally, Apple has been in talks with Generative AI OpenAI leader, according to Bloomberg report. microsoft (MSFT) is the largest investor in Open AI. Microsoft shares rose 0.4% to 418.16 on Monday.
There has been a lot of speculation about Apple’s plans. Apple researchers have been developing their own AI training models.
Apple AI update expected for iPhones
“As AI-enabled tools become more common, we believe there will be a strong value proposition for running AI at the edge (inference),” Evercore ISI analyst Amit Daryanani said in a recent report. “We believe Apple’s AI strategy will focus on incorporating on-device inference for language models that will substantially improve the user experience for the iPhone. Given its vertical integration and especially its control over its own silicon, Apple appears to be better positioned not only to expand the “There is a moat surrounding the iOS ecosystem, but also potentially drive an accelerated update cycle should the final rollout be deemed a big enough change.”
Additionally, Google recently stopped allowing users of its chatbot technology to generate images of humans. The move came after chatbot users produced photographs of black founding fathers in American history and portrayed Nazis as people of color.
Additionally, reports said that the problems arose after Google attempted to train the artificial intelligence software to consider diversity in responses.
Google admitted problems with “inaccuracies in some historical representations.” Google CEO Sundar Pichai said the chatbot’s biased responses around race were “unacceptable.”
Apple and Google Internet Search Agreement
Apple and Google already have ties. Alphabet pays fees to Apple to make the Google Internet search engine an option for iPhones.
A ruling is pending in the Justice Department’s non-jury antitrust trial against Google. The government alleges that Google maintains a monopoly on Internet search “through exclusive distribution agreements that direct billions of search queries to Google each day.”
Meanwhile, Google’s payments to Apple are under scrutiny in the antitrust lawsuit.
Google Stock Performance
As of March 15, Google stock had advanced just 1% in 2024. However, Google stock has recovered close to its level. 50 day moving average.
Google stock will reclaim the 50-day line and surpass Thursday’s high of 143.59. That would offer an early entry into the stock, which has a consolidation buy point of 153.78. Apple shares have fallen 10% in 2024.
Google Cloud Computing Conference
Additionally, the company is hosting Google Cloud Next from April 9 to 11. At the annual event for enterprise customers, Google is expected to make announcements about artificial intelligence.
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