Report: Apple in Talks Over 'Blockbuster' Google Deal

Insiders say Apple and Google are in talks over a deal that could be massive for both companies. The sources say Apple is looking into using Google's Gemini generative artificial intelligence technology in the next iPhone model. Bloomberg reports that the negotiations could lead to "a blockbuster agreement that would shake up the AI industry." If the deal does go through, an announcement isn't expected before June. More:

• Sources tell the New York Times that Apple has spoken to three other AI companies but Gemini could be the most likely candidate to fulfill Apple CEO Tim Cook's promise to introduce new generative AI capabilities this year. Gemini has already been added to new devices from Google and Apple's main smartphone rival, Samsung.

• The reported negotiations are a sign that Apple hasn't progressed as expected in its own AI efforts," TechCrunch notes. Some of Apple's own models might be used in the upcoming iOS 18 software, according to TechCrunch, but an external provider is expected for features "such as image creation and helping users with writing."
• Antitrust issues could be a problem for the deal, Bloomberg notes. Apple already has a longstanding partnership with Google on search, which Google pays around $20 billion a year for, and federal authorities have accused the firms of working together to try to dominate the market.
• The Times reports that the deal could be a bonanza for both companies. Apple could catch up quickly after lagging behind its rival on AI, and Google could massively expand the number of Gemini users. "Virtually overnight, Google could have more consumers using its AI than its chief rival, OpenAI, which makes ChatGPT," the Times notes.

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