Apple in Talks to License Google’s Gemini AI for iPhones

Apple is reportedly in active negotiations with Alphabet-owned Google to license Gemini, Google’s suite of generative artificial intelligence tools, for future iPhones. This move follows a Bloomberg report indicating that both tech giants are discussing the integration of Gemini into upcoming iPhone features.

Gemini encompasses various AI functionalities, from chatbots to coding assistants, and if the negotiations succeed, it could mark a significant collaboration between the two tech behemoths.

While Apple’s shares closed up under 1%, Alphabet’s shares surged more than 4% after the news broke, indicating investors’ interest and optimism in the potential partnership.

Apple’s CEO, Tim Cook, previously emphasized the company’s significant investments in AI during its annual shareholder meeting in February. Cook hinted at breaking new ground in generative AI later this year, aligning with speculations around the incorporation of Gemini into Apple’s ecosystem.

However, the terms, branding, and implementation details of the potential agreement remain undecided. Additionally, Apple has reportedly explored partnerships with other AI entities, such as OpenAI, suggesting a broader strategy to enhance its AI capabilities.

The upcoming Worldwide Developers Conference (WWDC) could serve as a platform for Apple to unveil its plans for generative AI, including potential insights into the integration of Gemini into iOS 18, the next major iPhone update expected to roll out later this year.

While CNBC could not independently verify the Bloomberg report, the prospect of Apple leveraging Google’s AI prowess underscores the evolving dynamics in the tech industry and the increasing importance of AI in shaping future innovations.