Apple and Google, two tech giants grappling with AI challenges, might be on the brink of a transformative collaboration, potentially integrating Google's Gemini AI into Apple's product ecosystem, according to a report by Morning Brew. While this development could trigger concern for OpenAI CEO Sam Altman, it presents a promising solution to the generative AI hurdles faced by both companies.
The prospect of Apple licensing Google's Gemini AI for its iPhones and other devices with the upcoming iOS 18 could address the ongoing struggle of both companies in the AI domain. Bloomberg's disclosure of these discussions sparked notable market reactions, with Alphabet shares surging over 7% and Apple's climbing more than 2%, albeit relinquishing some gains by market close.
This potential collaboration wouldn't be their first joint venture, as Google reportedly pays Apple a substantial $18 billion annually for its role as the default search engine on Apple devices. Embracing Gemini could offer mutual benefits, aiding both companies in narrowing the gap against OpenAI, which has seemingly surged ahead in the AI race.
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Morning Brew stated in its report that for Apple, such a partnership could be a strategic move to reshape investor perceptions regarding its AI capabilities. Despite Tim Cook's recent assertion of significant AI investments, Bloomberg suggested that Apple's AI offerings still lag behind leading models. However, Apple could leverage its in-house AI for on-device tasks while utilising Gemini's prowess for more intricate cloud-based features, such as text-to-image generation.
On the other hand, for Google, this collaboration could catapult Gemini to new heights of prominence and competitiveness in a race dominated by ChatGPT.
Should this deal materialise, the widespread adoption of Gemini across over two billion iPhones globally would be a boon. Additionally, it could serve as a platform for reputation restoration, particularly following Gemini's recent controversy, where it briefly ceased operations due to concerns about generating historically inaccurate images, Morning Brew added.
However, potential obstacles loom on the horizon. Regulatory scrutiny on Big Tech firms could hinder the progression of this partnership, especially considering the ongoing Department of Justice lawsuit concerning Google and Apple's search engine deal. Further, while Apple has explored the possibility of incorporating OpenAI's model, the final decision probably hinges on the Apple Worldwide Developers Conference in June, Morning Brew said.
In essence, the prospective integration of Google's Gemini AI into Apple's product lineup symbolises a convergence of tech titans in pursuit of AI excellence.
