Generative AI on Apple? Partnering with Google or OpenAI?

Apple in Talks with Google for Generative AI Technology

According to a report by Bloomberg, Apple is reportedly in “active negotiations” with Google to bring the Gemini generative AI technology to the iPhone. Apple is also considering using ChatGPT from OpenAI.

CEO Tim Cook has previously confirmed that Apple is “investing a lot of time and energy” in artificial intelligence features, and plans to release them to customers “later this year.”

Bloomberg’s report suggests that Apple plans to embed AI features in its products, powered by a combination of models they develop themselves (first-party) and models from other companies (third-party).

IOS 18, launching later this year, will leverage Apple’s models to enable on-device generative AI.  While cloud-based AI features such as text and image generation could come through partnerships with companies like Google.

Potential Impact of AI Deal Between Apple and Google

A deal with Google wouldn’t make Apple the first company to leverage the search giant’s AI features on its phones.

Earlier this year, Samsung added its Galaxy S24 smartphones with a series of Galaxy AI-branded features powered by Google’s AI technology. Google’s AI also prominently features on its own Pixel 8 devices. Apple has not yet decided on how to brand or implement Google’s AI technology in its devices.

The iPhone maker already has a long-standing deal with Google to make Google Search the default on its devices, in a deal believed to be worth $18 billion annually.

Regulators are increasingly contesting such deals, with the US Department of Justice accusing Google of using them to unfairly solidify its search engine’s market dominance.

Challenges and Outcomes

While the collaboration between Apple and Google seems potentially beneficial, Bloomberg notes that the deal is unlikely to be announced before the annual WWDC developer conference scheduled for June.

This suggests that a wait for the outcome of the negotiations between the two tech giants is still necessary.

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