Alphabet Shares Surge 7% Following Reports of Apple’s Talks to License Gemini AI for iPhones

Alphabet’s shares soared over 7% on Monday morning amid rumors that Apple is considering integrating Gemini into upcoming iPhone models. Meanwhile, Apple’s shares witnessed a more modest rise of over 2%.

Gemini stands as Google’s suite of generative artificial intelligence tools, from chatbots to coding aides.

Per a report from Bloomberg, Apple is engaged in discussions with Google, an Alphabet subsidiary, regarding the potential licensing of Gemini to integrate into upcoming iterations of the iPhone.

Alphabet Shares Surge 7% Following Reports of Apple's Talks to License Gemini AI for iPhones
Alphabet shares surge 7%: Apple in talks to license Google’s Gemini AI for iPhones. (Credits: Google Finance)

Sources familiar with the matter informed Bloomberg that the two tech giants are actively negotiating for Gemini to power specific new features slated for release in iPhone software later this year.

Anticipation swirls around Apple’s forthcoming major iPhone update, iOS 18, expected to be revealed at its Worldwide Developers Conference. This event traditionally serves as a platform for Apple to reveal its latest iPhone software ahead of its public release in the autumn, where it may shed further light on its aspirations for generative artificial intelligence.

Alphabet Shares Surge 7% Following Reports of Apple's Talks to License Gemini AI for iPhones
OpenAI discussions are underway; terms of agreement with Apple are not finalized. (Credits: Unsplash)

During Apple’s annual shareholder meeting in February, CEO Tim Cook underscored the company’s substantial investment in AI. “Later this year, I look forward to sharing with you how we will break new ground in generative AI, another technology we believe can redefine the future,” Cook remarked during the meeting.

Moreover, sources disclosed to Bloomberg that Apple has recently engaged in talks with OpenAI, exploring the potential utilization of its model.

However, as per the report, “the two parties haven’t decided the terms or branding of an AI agreement or finalized how it would be implemented.”

Apple refrained from commenting, while Alphabet did not immediately respond to inquiries.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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