If an agreement between Apple and Google is reached, it will strengthen the two companies’ search collaboration. For years, Alphabet Inc.’s Google has paid Apple billions of dollars every year to make its search engine the default option in the Safari web browser on iPhones and other devices. According to the sources, the two parties have yet to agree on the terms and branding of an AI deal, as well as how it will be executed.
The partnership would give Gemini a significant advantage with billions of potential users. However, it could also indicate that Apple isn’t as far along with its AI work as some had thought, and it could lead to further antitrust scrutiny of both businesses.
Apple is developing new features for iOS 18
Apple is developing new features for iOS 18, the next version of the iPhone operating system, based on its own AI models. However, such advancements will be centered on capabilities that run on its devices rather than those offered via the cloud. So Apple is looking for a partner to handle the hard lifting of generative AI, which includes functions for making graphics and writing essays based on simple cues.
Apple and Google spokespeople declined to comment. OpenAI did not immediately respond to a request for comment.
Since early last year, Apple has been testing its huge language model, dubbed Ajax, which is the technology behind generative AI. Some employees have also been experimenting with a simple chatbot called Apple GPT. However, Apple’s technology remains inferior to tools from Google and other rivals, according to the people, making a partnership look like the better option.
A contract with Apple would be Google Gemini’s most visible cooperation so far, and it may be a significant boost to the company’s AI efforts. Apple has more than 2 billion active devices, which might be home to Google Gemini later this year. In January, Samsung Electronics Co. released new smartphones featuring Gemini-powered AI.
Apple-Google partnership is under scrutiny as DOJ claims search monopoly
However, cooperation between the two Silicon Valley behemoths would catch the attention of regulators. The US Department of Justice is already suing Google over its existing search partnership with Apple. The government claims that the corporations collaborated to dominate the mobile search industry. The two have rationalized the agreement by claiming that Apple feels Google’s search quality is superior to competitors and that switching providers on the iPhone is simple.
The agreement between Apple and Google is also under scrutiny in the European Union, prompting Apple to make it easier for customers to switch their default search engine away from Google. As regulatory pressures increase and artificial intelligence becomes more ubiquitous, the existing search deal may become less profitable for both companies. It is feasible that a new agreement on AI may help compensate for this.
Microsoft Corp.’s sponsorship of OpenAl has prompted a regulatory investigation, with the US Federal Trade Commission investigating whether the deal may violate competition laws.
While talks between Apple and Google are ongoing, it is unlikely that any agreement will be disclosed before June, when the iPhone manufacturer plans to conduct its annual Worldwide Developer Conference. It is possible that the firms will not achieve an agreement, or that Apple will ultimately choose another generative Al provider, like OpenAI. Apple could also conceivably access several partners, as it does with search in its web browser. Anthropic, another generative Al supplier, offers a chatbot called Claude.
Gemini has piqued the interest of consumers and businesses, but it has not been without controversy. Last month, users observed that the algorithm occasionally incorrectly handled the race of people featured in Al-generated photographs. Sundar Pichai, Google’s CEO, described the issue as “totally unacceptable.” and image generation was paused.
Tim Cook hints at major announcement for disruptive innovations
Tim Cook. Apple’s CEO has promised a huge announcement this year. He informed investors that the company would deploy disruptive innovations that “break new ground.” The idea is particularly critical as investors seek new growth opportunities at the iPhone maker, which dropped a self-driving car project earlier this year. It transferred some engineers from that project to its artificial intelligence branch.
Last year. Cook stated that he utilizes OpenAl’s ChatGPT, but there are “a number of issues that need to be resolved.” He vowed that new Al features would be added to Apple’s platforms on a “very thoughtful basis.” By outsourcing the generating Al features to a different organization. Cook is also potentially reducing the platform’s obligation.
The generative Al capabilities being discussed might hypothetically be built into Siri and other apps. Meanwhile, new AI capabilities based on Apple’s indigenous models will continue to be integrated into the OS. They will be focused on proactively presenting users with information and performing things on their behalf in the background, according to sources familiar with the situation.