The next generation of Apple iPhones may come with an artificial intelligence update which is from the search engine giant Google.
Apple is negotiating a deal with Google which would permit Google to incorporate the Gemini AI engine into Apple’s iPhones, Bloomberg reported on Monday. Apple and Google haven’t confirmed an agreement. Both companies did not immediately respond on a demand for information on Monday.
Wall Street analysts said the potential deal would benefit both businesses in different ways.
“What matters here is that Apple may receive or retain some payment from Google for the privilege, especially if it helps Google keep more search revenue,” analysts at Melius Research said in an investor’s note. “For Google, it would be a reputational win versus Microsoft and OpenAI, after a series of missteps in launching reliable AI products.”
However, discussions among Apple and Google do not necessarily mean that an agreement is imminent. Bloomberg said the fact that Apple had also talked with Microsoft’s OpenAI about using their service.
Google both Google and Microsoft have been locked in the competition with each other to be the top two in the generative AI that has taken the world by storm in 2023, with the launch of OpenAI’s ChatGPT. It has captivated the interest of companies as well as users and has already begun to transform the world of work and entertainment and has raised concerns from legislators as well as tech companies over the rapid growth of AI’s impact on the society at large.
As of now, the technology majors Google as well as Microsoft are attempting to gain the upper hand in the market. This is something that the possibility of a partnership in conjunction with Apple could be the key to achieve.
Analysts believe that Apple’s talks with Google are a way for the Cupertino California-based company to boost its next version of iOS 18, ahead of the launch of its new products scheduled in June. If the talks are concluded, an Apple-Google partnership would grant Apple an access point to the Google Gemini AI app, Bloomberg reported, citing anonymous sources.
“We believe the company is looking to upgrade Siri, augment the App Store for AI developers and foster edge processing on its devices for faster, secure experiences,” Melius Research analysts said.
However, Google’s Gemini has experienced an upswing following the bot was changed to Gemini in the month of March. Google in February stopped its Gemini artificial chatbot’s ability to generate images after it was found out that Gemini was generating historical images with “inaccuracies.” Some examples included images of Nazi soldiers dressed as Black or Asian and popes dressed as females in which case the company apologised.
Dan Ives, senior equity research analyst at Wedbush Securities, said the motivation behind the deal is Apple looking to increase iPhone sales.
“For Apple, this will give them the foundation and technology blueprint to double down on AI features currently being developed within Apple Park to make sure that iPhone 16 will be a potential game changer iPhone release around AI functionality,” Ives declared.
