Alphabet Stock Surges 7% Amid News Of Potential Apple Agreement To License Gemini AI For iPhones
While Apple has also explored collaborations with other AI firms, such as OpenAI, discussions with Alphabet regarding the integration of Gemini into iPhones appear to be progressing.
Alphabet's shares surged by over 7% on Monday morning following reports of potential collaboration between tech giants Alphabet and Apple. It is rumored that Apple is currently engaged in discussions to license Gemini, Google's suite of generative artificial intelligence tools, for integration into future iPhone models. Concurrently, Apple's shares also experienced a notable increase, rising by more than 2%.
Gemini encompasses a range of AI functionalities developed by Google, including chatbots and coding assistants. According to sources familiar with the matter cited in a Bloomberg report, Apple is actively negotiating with Alphabet to incorporate the Gemini AI engine into upcoming iPhone software releases.
The discussions between the two tech giants are reportedly focused on leveraging Gemini to power specific new features slated for inclusion in iPhone software updates later this year. These negotiations suggest a potential deepening of the partnership between Apple and Alphabet in the realm of AI technology.
Apple's forthcoming major iPhone update, iOS 18, is anticipated to be unveiled during the company's Worldwide Developers Conference. This event typically serves as a platform for Apple to showcase its latest technological advancements, including developments in generative artificial intelligence. Apple CEO Tim Cook has previously highlighted the company's substantial investments in AI during the annual shareholder meeting, expressing enthusiasm for the groundbreaking possibilities offered by generative AI.
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While Apple has also explored collaborations with other AI firms, such as OpenAI, discussions with Alphabet regarding the integration of Gemini into iPhones appear to be progressing. However, details regarding the terms of the potential agreement, including branding and implementation strategies, remain unresolved.
As of now, neither Apple nor Alphabet has officially confirmed the reported negotiations. CNBC reached out to both companies for comment, with Apple declining to provide a statement at this time, and Alphabet yet to respond to inquiries.
The speculated collaboration between Apple and Alphabet underscores the growing importance of AI technologies in shaping the future of mobile devices. If finalized, the integration of Gemini into iPhones could herald significant advancements in user experience and functionality, further solidifying the positions of both companies in the competitive tech landscape.
