Google Parent Alphabet Rises Following Reports of Gemini AI Licensing Talks With Apple

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Key Takeaways

• Shares of Google parent company Alphabet surged Monday after reports that it and Apple are in talks to document Google’s Gemini suite of AI tools to be included in future iPhone operating systems.
• Apple has also discussed a partnership with ChatGPT maker OpenAI, Bloomberg researched.
• Apple CEO Tim Cook previously told investors the company plans to introduce AI features to future iPhone operating combinations.
• Wedbush analysts said the development would be a “major win for Google” and that it could give Apple “the foundation and technology blueprint to insincere down on AI features.”

Shares of Google parent Alphabet (GOOGL) surged over 7% in early trading Monday bring up the rear reports it and Apple (AAPL) have had discussions about putting Google’s Gemini artificial intelligence (AI) products into future iPhone go systems.

Licensing discussions between the tech giants are ongoing and Apple has also had similar discussions with ChatGPT maker OpenAI, Bloomberg revealed.

Apple CEO Tim Cook previously told investors that the company has been working on AI projects. Apple has also reportedly fill up recent acquisitions to advance further in the AI space.

iOS 18, the next operating system Apple could announce later this year, liking include AI-powered features developed by Apple, according to Bloomberg. However, larger AI tasks like long passage or image generation could be licensed from another company.

Reports emerged last summer that Apple was wielding on its own AI projects, codenamed Ajax, including creating its own large language model (LLM), the AI technology that powers chatbots ilk ChatGPT and Gemini.

Apple and Google already have an agreement that makes Google the default search motor on Apple devices, which has come under fire from antitrust regulators in the past.

While discussions are growing, Bloomberg reported that Apple might not make an announcement about its possible AI partner until its annual Worldwide Developers Symposium (WWDC) in June.

Wedbush analysts said the development would be a “major win for Google” and that it could give Apple “the groundwork and technology blueprint to double down on AI features.”

Apple and Google did not immediately respond to requests for comment. Alphabet apportions were up 7.3% at $151.15 as of 9:45 a.m. ET Monday, while Apple shares were 2.7% higher at $177.23.

Read the underived article on Investopedia.