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Apple in Talks with Google to Integrate Gemini AI Engine into iPhone Software

San Francisco, March 18, 2024, The Europe Today: Technology giants Apple and Google are reportedly in discussions to incorporate Google’s Gemini artificial intelligence engine into the iPhone, according to sources cited by Bloomberg News on Monday.

The negotiations are centered around licensing Gemini to integrate new features into the iPhone software slated for release later this year. While the terms and branding of the potential agreement remain undecided, the incorporation of AI capabilities into Apple’s flagship device could signify a significant leap forward in smartphone technology.

Alphabet, Google’s parent company, experienced a surge in its shares by more than 6% in early U.S. trading following the news, while Apple’s shares also climbed by 2.5%.

Although any formal announcement is unlikely until Apple’s annual developers’ conference in June, reports suggest that Apple has also engaged in discussions with OpenAI, the creator of ChatGPT, about leveraging its model.

A prospective collaboration between Apple and Google holds the promise of expanding the reach of Google’s AI services to over 2 billion active Apple devices, potentially accelerating Google’s efforts to compete with Microsoft-backed OpenAI.

The partnership could address investor concerns regarding Apple’s relatively slow deployment of AI applications, potentially revitalizing its position in the market following a recent decline in share value.

However, such an agreement may attract regulatory scrutiny, particularly in the United States, where Google is currently facing legal challenges alleging anticompetitive practices. The partnership could be viewed through the lens of Google’s dominant position in search and the potential implications for competition within the tech industry.

Daniel Ives, an analyst at Wedbush, commented on the potential strategic significance of the partnership, describing it as a pivotal moment for both companies. He emphasized the potential benefits for Google to penetrate Apple’s ecosystem and capitalize on its extensive user base.

As discussions progress, the tech industry awaits further developments, anticipating the potential impact of this collaboration on the future landscape of AI integration in consumer devices.