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Thursday, July 18, 2024

Apple Considering Partnership with Google to Integrate Gemini AI Engine into Future iPhone Models

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Apple iPhones might get a new feature upgrade soon, and it could involve using Artificial Intelligence technology. And guess what? The source for this upgrade could be Google, the famous search engine company.

Speculation arose on Monday as Bloomberg reported Apple considering a deal with Google to license its Gemini AI engine for integration into iPhones. Neither Apple nor Google has confirmed any such deal yet. Analysts on Wall Street suggest that the potential deal could benefit both companies in various ways.

According to analysts at Melius Research, “The significance here is that Apple could either pay or receive some compensation from Google for special rights, especially if it helps Google generate more revenue from search.” After several missteps in launching reliable AI products, this could be a significant win for Google compared to Microsoft and OpenAI.

However, discussions between Apple and Google don’t necessarily indicate a deal in the works. Bloomberg also mentioned Apple exploring talks with Microsoft’s OpenAI for utilizing its services.

Google and Microsoft are currently in a race for dominance in Generative AI, which sparked a revolution with the advent of OpenAI’s ChatGPT in 2023. Since then, technology has equally fascinated businesses and users, reshaping work and entertainment while lawmakers and tech companies express concerns over rapidly developing AI impacts on society.

For now, tech giants Google and Microsoft are striving for market dominance, making collaboration with Apple crucial to achieve growth.

Analysts suggest that Apple’s dialogue with Google in Cupertino, California, before its June program unveiling new products, is an effort to enhance its upcoming iOS 18. Referring to unidentified sources, Bloomberg stated that if the Apple-Google deal materializes, Apple could gain access to Google’s Gemini AI app.

Analysts at Melius Research believe, “The company is considering upgrading Siri, expanding the App Store for AI developers, and boosting edge processing on its devices for faster, secure experiences.”

However, Google’s Gemini has faced challenges since its rebranding last month. The search giant suspended its Gemini AI chatbot from creating images in February after it was found generating historically inaccurate depictions. Examples included portraying Nazi soldiers as black and depicting Asians and the Pope as women, prompting the company to apologize.

Dan Ives, senior equity research analyst at Wedbush Securities, believes that encouragement for a potential deal could lead to an increase in iPhone sales for Apple.

Ives stated, “For Apple, it will provide them with a foundation and technological blueprint for doubling down on AI features being developed within Apple Park, ensuring that the iPhone 16 will be a potential game-changer in AI capabilities.”

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