Apple Inc. is in talks with Google about adding Google’s Gemini AI engine to the iPhone. A report citing people who know the matter says the talks are paving the way for a huge deal that will shock the AI industry.

There are rumours that Apple and Google are in talks to let Apple use Google’s Gemini set of creative AI models to power some new features that will be added to the iPhone software this year. Reports say Apple has also recently talked with OpenAI and is considering using its model.

What this agreement signifies

If an agreement is reached, it would strengthen the search collaboration between Apple and Google.

Google, a division of Alphabet Inc., has been paying Apple billions of dollars yearly to set its search engine as the default in the Safari web browser on the iPhone and other devices.

According to the people, the two sides have not yet agreed on the specifics of an AI agreement, such as its branding or terms or how it will be put into practice.

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One of the oldest technology collaborations would be extended with an Apple-Google deal on generative AI.

With billions of potential users, a partnership would give Gemini a significant advantage. Nevertheless, it might also indicate that Apple is not progressing as much with its AI projects as some had anticipated, which might lead to further antitrust scrutiny of both businesses.

Utilising Google’s state-of-the-art Gemini AI, Apple, the behemoth behind the iPhone, has been able to scan user evaluations and extract insightful data about customer happiness. 

Through this partnership, the strengths and flaws of the iPhone are identified by utilising AI to sort through a vast amount of user feedback. Apple can learn more about customer preferences and pinpoint areas that future iPhone models could improve upon by examining these reviews. Customers may experience an improved and more user-friendly iPhone due to this.

Apple’s AI promises to materialise.

Apple CEO Tim Cook promised investors new generative AI capabilities this year. Gemini is already on Samsung and Google’s latest smartphones to edit movies and summarise sounds.

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Google has been instrumental in the success of the iPhone ever since Apple unveiled the gadget in 2007.

At first, it offered Google Maps for navigation and the iPhone’s Safari browser’s default search engine. This is now a profitable partnership, with Google paying Apple more than $18 billion annually.

Based on its AI models, Apple is preparing new features for iOS 18, the upcoming iPhone operating system. However, rather than cloud-delivered capabilities, those improvements will concentrate on functions that run on its devices.

To handle the heavy lifting of generative AI, such as functionalities for producing photos and essays in response to basic prompts, Apple is looking for a partner.