HomeAIApple and the agreement with Google to bring the AI Gemini model...

Apple and the agreement with Google to bring the AI Gemini model to iPhones

The tech giant Apple is in negotiations with Google to obtain the license for the AI generative models Gemini, currently in the hands of the search engine, with the aim of including them in future iPhone devices.

In the past, Apple had also contacted OpenAI, the parent company of the ChatGPT chatbot, to implement the technology in its own smartphones, as it was behind other Silicon Valley competitors in developing proprietary artificial intelligence systems.

At the moment the parties have not yet reached an agreement and negotiations will continue in the coming days.

Apple negotiates with Google the possibility of bringing the AI Gemini model inside the iPhone

According to what was reported yesterday by Bloomberg, Apple would be in the middle of a business negotiation with Google as it is interested in integrating the AI Gemini engines into its Iphone.

On the negotiating table is the license that would allow the use of Google’s generative models in the iOS 18 update, offering its users completely innovative features on their smartphone.

If the agreement were to be confirmed, Apple would succeed in the challenge of bridging the gap with other big tech companies in Silicon Valley that have already developed a proprietary AI model, thus limiting the criticism from stakeholders who have noticed the technological apple’s delay compared to its rivals in this field.

Engineers at Apple are actually developing an alternative AI framework, called “Ajax”, but in addition to costing the company millions of dollars a day for research and training of language models, it does not perform as well as Google’s Gemini.

The two companies have been engaged in another agreement for years that sees Google paying Apple tens of billions of dollars each year to give greater visibility to its mobile application in the dedicated store of the iPhone.

This partnership, among other things, has been widely rumored for alleged violations of US antitrust law, for which the Department of Justice is involved in a historic case for the future of tech.

Now, with the expected arrival of iOS 18 by the end of the year, the company founded by the visionary Steve Jobs must absolutely find a partner that already has the necessary large-scale hardware infrastructure and processing capabilities, in order to be able to enhance new AI-based cloud functionalities, such as the ability to create images and write essays based on individual suggestions.

If negotiations with Google were to be abandoned, Apple could turn to the competing product OpenAi’s ChatGPT, with which the smartphone and computer manufacturer has already had a conversation in the past for the same commercial purpose.

Bloomberg has reported that Google and Apple have not yet decided on the terms or the brand of the licensing agreement for Gemini AI.

Apple analyst Ming-Chi Kuo confirmed that Apple’s work on generative artificial intelligence is “significantly behind its competitors”.

Analysis of Google (GOOGL) and Apple (AAPL) stocks

Immediately after yesterday’s news, Google’s stock price rose by over 6%, while Apple’s grew by up to 2.5%, driven by investors’ enthusiasm for a partnership that could make tech and AI history.

The introduction of the Gemini artificial intelligence engine into the iPhone in the next iOS 18 update would align the smartphone manufacturer with several other competitors, as well as offering the company that owns the search engine a generous compensation or significant royalties.

We notice how yesterday the GOOGL stock opened the market strongly in positive territory, reaching a price level that had been lost last month, thus approaching the threshold of historical highs.

The trend of this asset seems solidly bullish in the medium term, with prices bouncing very well in recent months on the EMA 50 weekly, giving hope to investors for a next leg up of Google’s shares.

Google stock price chart
Weekly chart of Google stock price

The situation for Apple seems slightly different: the double top reached in December 2023 triggered a bearish price action in the current year that has currently also broken below the support of the EMA 50 weekly.

Despite yesterday’s small increase, if demand does not consistently pick up again, the AAPL stock could still go through a prolonged downward phase in the coming weeks, with potential targets within the range of 160-150 dollars.

At the moment, only the integration of Gemini AI could create that attention from investors capable of turning around the short-term fortunes of the stock.

Apple stock price chart
Weekly chart of Apple stock price
Alessandro Adami
Alessandro Adami
Graduated in "Information, Media and Advertising", for over 4 years interested in the cryptocurrency and blockchain space. Co-Founder of Tokenparty, community active in spreading crypto-enthusiasm. Co-founder of Legal Hackers Civitanova marche. Information technology consultant. Ethereum Fan Boy and supporter of Chainlink oracles, strongly believes that smart contracts will be central in the development of society.
RELATED ARTICLES

Stay updated on all the news about cryptocurrencies and the entire world of blockchain.

MOST POPULARS