The new iPhones from Apple might get a smarter upgrade thanks to Google. Apple is thinking about working with Google to put Google’s Gemini AI engine into their iPhones.
This news came from a report by Bloomberg on Monday. However, Apple and Google haven’t said anything about this deal yet. They didn’t respond when asked for comments on Monday.
Financial experts who watch the stock market think this deal could benefit both Apple and Google 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 investors’ note. “For Google, it would be a reputational win versus Microsoft and OpenAI, after a series of missteps in launching reliable AI products.”
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But talks between Apple and Google don’t necessarily mean a deal is coming. Bloomberg reported that Apple has also spoken to Microsoft’s OpenAI about using its service.
Google and Microsoft are competing to lead in generative AI, which became popular in 2023 with OpenAI’s ChatGPT. This technology is changing how we work and play, but it’s also raising concerns about its impact on society.
Right now, Google and Microsoft are racing to dominate this market. Partnering with Apple could help them gain an edge.
Apple is talking to Google to improve its upcoming iOS 18 software, which will be announced in June. If they make a deal, Apple could use Google’s Gemini AI app. Bloomberg got this information from unnamed sources.
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“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.
Google’s Gemini AI has faced challenges recently after it was renamed last month. In February, Google had to stop its Gemini chatbot from creating images because it was making historical pictures with mistakes. For instance, it showed Nazi soldiers as Black or Asian and depicted popes as female. Google said sorry for these errors.
Dan Ives, a senior analyst at Wedbush Securities, believes Apple is considering the deal to boost 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 said.
