Apple is reportedly looking to power new features coming to the iPhone software later this year with its competitors’ artificial intelligence systems.
The Cupertino, California-based tech giant has met with both Google and OpenAI to license their respective AI systems to support those features, people familiar with the discussions told Bloomberg News. Apple is reportedly in “active negotiations” to license Google’s Gemini system, although it has considered using OpenAI’s model.
If Apple does pursue a deal with Mountain View, California-based Google, it would build on their previous partnership for search; Google has paid Apple billions of dollars annually to make its search engine the default option in its Safari browser. Apple also earned a 36% share of all search ad revenue Google made through Safari.
A potential deal could give Google credibility with the billions of potential users that own iPhones. Gemini is already active in Google’s own Pixel 8 devices and Samsung’s Galaxy S24 series smartphones. The agreement would also give Google a new feather in its cap to tout after — or distract from — a round of controversy over historically inaccurate images Gemini’s image generator produced last month.
Representatives for Google, Apple, and OpenAI did not immediately respond to requests for comment.
Google parent Alphabet’s stock was up almost 7% Monday morning, while Apple stock was up almost 3%.
Apple’s quiet AI ramp-up
Although the possible agreement would bring AI to Apple’s customers faster, it would mark a concession that Apple isn’t progressing as quickly on its own technology.
The company has reportedly been testing AI features for its iOS 18 software and software used in internal operations, but those will be focused on features that live in its devices, rather than the cloud. Apple has also been testing its own large language model — codenamed Ajax — and a chatbot nicknamed Apple GPT; however, the technology isn’t up to par with its rivals’ offerings, Bloomberg reported.
Apple remains the top buyer of AI and machine learning companies, acquiring nearly twice as many as Meta and Microsoft. Most recently, it bought Canadian startup DarwinAI, which focuses on technology making AI systems smaller and faster.
Apple CEO Tim Cook has promised to “break new ground” on generative AI this year and used the company’s annual shareholders meeting to tease new features, which are thought to be revealed at its annual Worldwide Developers Conference in June.