Apple Shares (NASDAQ:AAPL) are up 0.5% in the pre-market at $174 as rumours abound on another partnership between two tech giants, but this time in the field of AI. Discussions to incorporate Google's Gemini artificial intelligence engine into its iPhone line-up are said to be underway, signalling the tech giant's push to heighten AI-driven features on its flagship devices.
As the AI landscape intensifies with innovations, Apple seeks to enhance the iPhone with advanced capabilities through this strategic integration. With the anticipated launch of the iPhone's iOS 18 operating system mid 2024, Apple aims to introduce new features powered by its proprietary AI models. The integration of Gemini could complement these developments by providing generative AI functionalities that could include sophisticated image creation and nuanced essay writing tools, catering to a broad range of user demands.
While Apple's talks with Google underscore the company's ambition to lead in the generative AI domain, discussions with Microsoft-backed OpenAI have also taken place. These discussions reflect the extensive search for a robust AI partner to furnish the next wave of intelligent features on the iPhone.
Despite these active conversations, it is understood that Apple has not yet reached a definitive decision regarding the terms or branding of any potential AI agreement. The specifics of such a partnership are likely to remain under wraps until any official announcement, which market watchers speculate could come as late as Apple's Worldwide Developers Conference in June.
Apple's pursuit of a partnership is seen as a strategic step to catch up with rivals such as Microsoft and Google, both of which have been more aggressive in deploying generative AI capabilities in their respective products and services. Apple CEO Tim Cook has hinted at more disclosures related to the deployment of generative AI technologies by the company later in the year which aligns with the larger narrative of Apple's attempts to integrate more AI into its ecosystem.
The potential partnership also leverages the existing relationship between Apple and Google, where the latter is currently the default search engine on Apple's Safari web browser. An enhanced collaboration between the two giants for AI could deepen this interconnectivity.
Apple Making AI Acquisitions At Scale
It should come of no surprise to watchers of Apple that AI is a focal point at present, with more than 30 AI focussed acquisitions having taken place over the past year., the sheer volume and breadth of which outpacing that of its' industry rivals. The latest of which, DarwinAI being made news in the past few days is expected to give Apple the capacity to visually inspect components during manufacturing using AI.
Despite making more acquisitions in this space than many others in the past years, Apple still lags behind on the AI front, and it will be seen if strategic partnerships will become more a focus in the months ahead, or whether more companies, and AI brains will be added to the Apple stable.
