Apple’s Next Move: Possible Google Gemini Integration to Elevate iPhone’s AI Capabilities

• Apple may license Google’s Gemini AI for iPhone 16, boosting AI capabilities and potentially addressing concerns about Apple’s pace in AI development.
• The partnership could benefit both companies, aiding Apple’s AI strategy while helping Google maintain its search dominance, but may face regulatory scrutiny.

Recently, there’s been buzz about the next iPhone, the iPhone 16, and the upcoming iOS 18 operating system getting a major boost in AI features. According to a report by Bloomberg’s Mark Gurman, Apple and Alphabet Inc. (the parent company of Google) might be on the verge of striking a significant deal, potentially the biggest since Google became the default search engine on Safari. Both Apple and Alphabet’s stocks saw a rise in response to this news.

Gurman’s report suggests that Apple is considering licensing Google’s Gemini, a collection of AI models, to power some of the new features in the iPhone software. Additionally, there have been talks between Apple and OpenAI. This could be beneficial for both companies in fending off competition from Microsoft-backed OpenAI, which has led to Microsoft overtaking Apple as the world’s most valuable company. Investors have been critical of Apple’s perceived slow progress in AI, which this partnership could address. For Google, this collaboration could help maintain its dominance in search against emerging competitors like ChatGPT.

Earlier, Google’s AI was a highlight of Samsung’s Galaxy S24 launch, emphasizing features like Chat Assist and Live Translate. Mark Gurman also shared on social media that Apple’s internal AI features, referred to as “Project Graymatter,” are distinct from the potential Gemini-powered features. However, any agreement between Apple and Google could face scrutiny from US regulators, who have already sued Google over its search monopoly.

This deal could fill a crucial gap in Apple’s AI strategy and shake up the AI landscape.