Apple is far behind in the AI business since the significantly developed field expanded very much over the last couple of months. But now the tech giant is in talks with Google. Apple plans to implement Google’s Gemini in the iOS system and use it to navigate through the iPhone.
The negotiations are about some of the new features Gemini has to offer and Apple wants to license those for their iPhones. Though the companies did not decide on an agreement on the AI just yet since talks just started. It is most probable that there won’t be any deal announced until June when there is the annual conference of developers.
Alphabet shares jumped more than 6% while Apple was up just 2.5% in the early U.S. trading day.
Google owned Alphabet is not the only option Apple has. The company also had talks with OpenAI, the developers of ChatGPT. If OpenAI would close the deal with Apple it would almost secure the Monopoly for OpenAI on the AI market since everyone knows about it already and uses it. Furthermore Google would miss out on a big opportunity to keep up in the field of Artificial Intelligence.
The impact of the deal between Apple and Google
If the two companies reach a deal it could help Google to expand the use of their AI services to more than 2 billion Apple devices, especially iPhones. This would be the perfect opportunity for Google to catch up to ChatGPT and with that give Microsoft backed OpenAI some competition. But it could also be very good for Apple that lost it’s reputation as the most valuable company this year after a 10% decline in value.
“This strategic partnership is a missing piece in the Apple Ai strategy and combines forces with Google for Gemini to power some of the AI features Apple is bringing to market”
Daniel Ives, analyst at Wedbush
Google already partnered with Apple’s rival Samsung to use Gemini on the new Samsung Galaxy S24 series. But to partner with Apple would expand the use of Gemini significantly. Tim Cook, Apple’s CEO said last month that the company wants to invest significantly into the AI business and that Apple wants to implement it into iPhones.
The iOS 18 update would be the perfect opportunity to implement an AI system into the iPhones but which one it will be is not sure yet. It would be a big step for Google though if they manage to close the deal.
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