Topline

Apple is discussing a potential deal to integrate Google’s artificial intelligence platform Gemini into the iPhone, Bloomberg reported Monday, in what could be a major deal between the rival tech giants and impact the wider AI industry.

Key Facts

According to Bloomberg, Apple is holding “active negotiations” to license Gemini’s AI models to integrate its generative AI features into an upcoming software update to the iPhone later this year.

Apple’s discussions with Google follow similar talks it held with Microsoft-backed OpenAI—the maker of ChatGPT and DALL-E, the report adds.

Apple will release iOS 18—the latest version of its mobile operating system—later this year and it is expected to integrate several AI features, including a more powerful version of the digital assistant Siri.

While the iPhone maker is reportedly working on its own AI tools, which will run locally on its devices, the Gemini integration will allow it to tap into Google’s cloud-based and more complex generative AI services like a chatbot or image generator.

According to the report, the deal is yet to be finalized, and if it falls through, Apple may end up choosing an alternative AI provider like OpenAI or Anthropic.

Crucial Quote

During Apple’s earnings call last month, CEO Tim Cook said: “In terms of generative AI… we’ve got some things that we are incredibly excited about that we’ll be talking about later this year.” He later added: “Let me just say that I think there’s a huge opportunity for Apple with generative AI and with AI, without getting into many more details or getting out ahead of myself.”

This is a developing story.

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