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Two of the world's biggest tech companies are reportedly discussing a partnership that would upend the AI industry.
Apple is considering integrating Google's AI model, Gemini, into the iPhone.
Nothing is finalized, so the potential deal terms aren't clear. But the broad strokes of the arrangement could see Apple license Gemini to power new features on iPhone software as soon as this year, according to a report from Bloomberg's Mark Gurman.
The rumors come at the perfect time for both sides.
For weeks, Google has been publicly trashed over Gemini being too "woke." The criticism was so loud CEO Sundar Pichai acknowledged the company "got it wrong" in a memo. More broadly, insiders have questioned if Google can still be considered the tech world's vanguard of "cool."
Meanwhile, Apple has drawn attention for what it's not doing in AI. The company has been noticeably quiet around its AI plans compared to peers like Google, Microsoft, Meta, and Amazon.
CEO Tim Cook alluded to a bigger announcement about the tech later this year at Apple's annual shareholder meeting. But the company seems to be playing catch up, as it reallocated resources from its scrapped electric vehicle to focus on generative AI.
By teaming up, Google's Gemini gets a much-needed vote of confidence and access to the iPhone's sizable user base. And Apple keeps pace in the AI race by outsourcing some of the messy bits of the business, Business Insider's Hasan Chowdhury writes.
Wall Street seems to agree. Both companies' shares rallied off the back of the report, BI's Phil Rosen writes.
Apple and Google have a history of successful partnerships.
Google has paid Apple to be the default search provider on the iPhone for years. Apple gets a nice chunk of change — reportedly $18 billion in 2021. Google maintains its place as the go-to search engine on the internet. It's a win-win.
The tie-up isn't without its critics, though. It's a key piece of the Department of Justice's lawsuit against Google for "anticompetitive and exclusionary" behavior in a landmark trial for Big Tech that kicked off last year.
So even if Apple and Google come to an agreement, they could still face some serious regulatory pushback.(And to be clear, Bloomberg's report mentioned Apple had discussions with OpenAI, the creator of ChatGPT, about a similar arrangement, so there's still a long way to go.)
But if the history of Apple-Google deals has taught us anything, their combined power is almost unmatched.
Apple is considering integrating Google's AI model, Gemini, into the iPhone.
Nothing is finalized, so the potential deal terms aren't clear. But the broad strokes of the arrangement could see Apple license Gemini to power new features on iPhone software as soon as this year, according to a report from Bloomberg's Mark Gurman.
The rumors come at the perfect time for both sides.
For weeks, Google has been publicly trashed over Gemini being too "woke." The criticism was so loud CEO Sundar Pichai acknowledged the company "got it wrong" in a memo. More broadly, insiders have questioned if Google can still be considered the tech world's vanguard of "cool."
Meanwhile, Apple has drawn attention for what it's not doing in AI. The company has been noticeably quiet around its AI plans compared to peers like Google, Microsoft, Meta, and Amazon.
CEO Tim Cook alluded to a bigger announcement about the tech later this year at Apple's annual shareholder meeting. But the company seems to be playing catch up, as it reallocated resources from its scrapped electric vehicle to focus on generative AI.
By teaming up, Google's Gemini gets a much-needed vote of confidence and access to the iPhone's sizable user base. And Apple keeps pace in the AI race by outsourcing some of the messy bits of the business, Business Insider's Hasan Chowdhury writes.
Wall Street seems to agree. Both companies' shares rallied off the back of the report, BI's Phil Rosen writes.
Apple and Google have a history of successful partnerships.
Google has paid Apple to be the default search provider on the iPhone for years. Apple gets a nice chunk of change — reportedly $18 billion in 2021. Google maintains its place as the go-to search engine on the internet. It's a win-win.
The tie-up isn't without its critics, though. It's a key piece of the Department of Justice's lawsuit against Google for "anticompetitive and exclusionary" behavior in a landmark trial for Big Tech that kicked off last year.
So even if Apple and Google come to an agreement, they could still face some serious regulatory pushback.(And to be clear, Bloomberg's report mentioned Apple had discussions with OpenAI, the creator of ChatGPT, about a similar arrangement, so there's still a long way to go.)
But if the history of Apple-Google deals has taught us anything, their combined power is almost unmatched.

