Apple Could Collaborate With Google for Gemini-Powered Feature on iPhones

Apple and Google are in discussions to reach a partnership agreement to leverage the power of Google’s Gemini artificial intelligence tool to diversify features on the iPhone, according to a Bloomberg report.

If these discussions materialize, this move would significantly strengthen Google’s positioning, especially since it already has an existing agreement with Apple as the main search engine provider for Safari on iPhones. For many years now, Alphabet (the parent company of Google) has paid Apple billions of dollars every year to make its search engine the default option in the Safari web browser on the iPhone and other devices.

The two parties haven’t yet agreed on the terms or branding of an AI agreement or finalized how it would be implemented, according to people familiar with the situation.

On Monday as the New York markets opened, Alphabet shares spiked by 7.4%. According to Bloomberg, it was the “biggest intraday gain since Feb. 2, 2023.”

This partnership would set Gemini apart to tap into billions of potential users. However, it might also be a sign that Apple isn’t as far along with its AI developments as consumers may have hoped for and could open up the stage for more scrutiny around both giants. 

Apple is ramping up to introduce fresh features in iOS 18, the next version of its iPhone operating system, which will leverage its proprietary AI models. However, these advancements will give attention to features that function on their own devices instead of cloud-based services. Consequently, Apple is on the search for a collaborator to take care of the complex areas of generative AI that include tasks such as image generation and essay writing from basic prompts.

While discussions are well on the way, it’s unlikely that any deal would be revealed until June, when the iPhone maker plans to hold its annual Worldwide Developers Conference. It’s also possible that the deal won’t go through and Apple will decide to go with a different generative AI business, such as OpenAI.

In a big announcement this year, Tim Cook, Apple’s CEO, promised investors that the company would release transformative features that “break new ground.” The goal is key as investors look for new growth sources at the iPhone maker, which put a stop to a project to develop a self-driving car in February. It transitioned some engineers who were on that project to its artificial intelligence department instead.