Alexander Lewis 
Mar 18, 2024
In a surprising move, Apple and Google are likely to join hands to integrate Gemini artificial intelligence into the iPhone.
Reuters, citing people familiar with the situation, reported that the two tech giants are negotiating ways to use Gemini to power some new features which will be added to the iPhone’s software in 2024.
However, it was learnt that terms or branding of an AI agreement or how it would be implemented have not been decided so far.
Following the development, shares of Alphabet, Google’s parent company, rose by 7% adding approximately $120 billion to the company’s market capitalisation.
Wedbush analysts led by Dan Ives, in a clients note, wrote: “Getting Gemini onto iPhones would be a “major win” for Google as there’s “clearly a major license fee attached to this.”
It should be noted that these “active negotiations” for the most comparable agreement are actually Apple’s $18 billion annual windfall from Alphabet for Google to be the default search engine on iPhones.
Reports further suggest that while the deal is yet to be finalised, but if it falls through, Apple may end up choosing an alternative AI provider like OpenAI or Anthropic.
