If the negotiations fail, Apple may seek another generative AI provider such as OpenAI or turn to multiple partners. A successful deal could offset losses from regulatory pressure on the existing search partnership between the two companies. Google has been paying Apple billions to keep its search engine the default in Safari on Apple devices, a deal now under scrutiny from the U.S. Department of Justice and the European Commission. Despite rumors of generative AI features on the iPhone and iPad by late 2024, Apple analyst Ming-Chi Kuo claims Apple's work on generative AI is significantly behind its competitors.
Key takeaways:
- Apple is in talks with Google to integrate Google's Gemini AI engine into the iPhone as part of iOS 18, according to Bloomberg's Mark Gurman.
- Apple is focusing on features that operate on-device and do not require an internet connection, but for additional cloud-based generative AI features, it is seeking a partner with large-scale hardware infrastructure and compute capabilities.
- If the negotiations with Google fail, Apple could seek another generative AI provider such as OpenAI or turn to multiple partners.
- Apple is rumored to be bringing major new AI capabilities to its iPhone operating system with the release of iOS 18 later this year.