Controversial potential partnership between Apple and Google for AI technologyApple in talks with Google for advanced AI integration on iPhone, sparks stock surge. Credit: techxplore.com

According to a report by Bloomberg on Monday, Apple is currently in advanced discussions with Google to incorporate their advanced Gemini AI technology into the iPhone. If this deal is finalized, it would address one of the main concerns surrounding Apple's AI strategy, which has been criticized for falling behind its competitors in the tech industry. The news caused a significant surge in Google's stock price, increasing by more than six percent, while Apple's stock also saw a boost of 2.5 percent.

Sources say that Apple is looking to collaborate with Google for their upcoming iOS update, set to be released later this year, and the AI technology is expected to be a prominent feature on the next iPhone. This potential partnership would not be the first between the two companies, as they already have a search engine agreement in place where Google pays Apple billions of dollars annually for preferred placement on the iPhone. However, this agreement is currently under scrutiny as the US Department of Justice has filed a lawsuit against it for potential antitrust violations.

In addition to discussions with Google, Apple has also reportedly held talks with OpenAI, the developers of ChatGPT, to work together on generative AI. However, there are no further details available at this time. During a recent statement, Apple CEO Tim Cook hinted at major advancements in the company's AI capabilities, but some may be disappointed that they are partnering with other companies rather than developing their own technology.

Analyst Colin Sebastian from Baird believes that if a deal is reached between Apple and Google, it would essentially give Google dominance over generative AI on mobile devices, including both Android and iOS. This could also mean that Apple may struggle to catch up to other leaders in the field of GenAI in the upcoming generation of devices.

Ann Castro
Ann Castro Author
Ann Castro carries a total of 7 years experience in the healthcare domain. She owns a Master’s of Medicine Degree. She bagged numerous awards by contributing in the medical field with her ground-breaking notions. Ann has developed her own style of working and known for accuracy in her work. She loves trekking. She visits new places whenever she gets free time.