Alphabet, the parent company of Google, witnessed a remarkable surge in its shares, exceeding a staggering 7% on Monday morning. This surge was triggered by a compelling report indicating that the renowned tech titan, Apple, is currently engaged in discussions regarding the potential licensing of Gemini, an innovative suite of artificial intelligence tools developed by Google. In tandem with this surge, Apple’s own shares experienced a notable uptick, surpassing a commendable 2%.
Gemini, as it stands, epitomizes Google’s ambitious foray into the realm of generative artificial intelligence, boasting a diverse array of applications ranging from sophisticated chatbots to invaluable coding assistants.
Per a detailed report from Bloomberg, it has come to light that Apple is actively negotiating with Google’s parent company, Alphabet, with the aim of integrating the Gemini AI engine into its iconic iPhones. Sources familiar with the matter, cited by Bloomberg, have revealed that these negotiations are currently underway, showcasing the extent of collaboration between these tech giants. The overarching objective behind these negotiations is to empower certain forthcoming features within the iPhone software, slated for release later this year.
Anticipation mounts as Apple prepares for its highly anticipated Worldwide Developers Conference, where the curtain is expected to be lifted on iOS 18, the forthcoming iteration of its groundbreaking iPhone software. It is during this pivotal event that Apple traditionally unveils its latest innovations and sets the stage for their eventual rollout to consumers come fall.
Tim Cook, the esteemed CEO of Apple, provided insights into the company’s strategic focus during its recent annual shareholder meeting in February. Emphasizing the pivotal role of artificial intelligence, Cook affirmed Apple’s steadfast commitment to substantial investments in this transformative technology. He hinted at forthcoming breakthroughs in generative AI, alluding to a future that promises to be defined by innovation and progress.
Moreover, Apple’s quest for innovation extends beyond its discussions with Google, as recent deliberations with OpenAI have also come to light. While the contours of these discussions remain nebulous, Bloomberg’s sources suggest that both parties are yet to finalize crucial details pertaining to the terms, branding, and implementation of a potential AI agreement.
As the industry eagerly awaits further developments, CNBC’s attempts to independently verify Bloomberg’s report have yielded no definitive insights. Apple has opted to maintain a discreet silence on the matter, while Alphabet, when approached by CNBC for comment, has yet to provide a response.