Generative A.I. Collaboration Brewing Between Apple and Google for iPhones

Apple and Google are talking about using Google’s AI model, Gemini, for the next iPhone. This AI tech has changed the tech world a lot.

The talks are early, and they haven’t decided exactly what they’ll do yet. Apple has also talked with other AI companies. They want to use a big language model that can understand lots of data and write on its own.

Tim Cook, who leads Apple, said they will bring new AI features this year. Samsung and Google have already put Gemini in their latest devices. They use it for video editing and summarizing audio. Apple and Google didn’t say anything about this. Bloomberg talked about their discussions earlier.

If Apple and Google make a deal on generative AI, it would continue a long partnership. Since the iPhone came out in 2007, Google has been a big part of its success.

First, they offered Google Maps for directions. Then, they made a deal to make Google the default search engine on Safari, which earns Apple over $18 billion annually.

Google talking about providing AI for iPhones is another example of Google helping Apple where it lacks. Apple’s own AI development, like ChatGPT and Gemini, has been slower, according to two sources. Apple’s delay in AI has been costly. 

Microsoft surpassed it this year as the most valuable company. Microsoft has been focusing on AI, which is seen as very valuable and could change businesses a lot.

Even though Apple is behind schedule, it could still be a big player in AI. With over two billion devices being used, it’s attractive to Google and others. Apple’s reputation for keeping user data private could also help in the future with AI services for things like calendars and health data.

If a deal happens, Gemini could come to iPhones worldwide, giving Google access to a huge number of users. This would make generative AI even more popular. Google could quickly have more users than OpenAI, its main rival with ChatGPT. A deal with Apple would be very exciting for Google.

If Apple chooses Google as an AI supplier, it would be a big show of support for Google. Google has faced some setbacks with its AI plans. Their first AI chatbot, Bard, didn’t get great reviews when it launched last March. It also didn’t attract as many users as ChatGPT.

Google introduced a new chatbot called Gemini in February. However, it faced issues recently. Users discovered that its image generator wasn’t making accurate images of historical figures’ races. Also, it often wouldn’t create images of white people.

This led to accusations of bias. Google turned off the feature for creating people images and promised to solve the problem.

On Tuesday, a Bernstein Research analyst named Toni Sacconaghi described an Apple-Google deal as beneficial for both companies. It would provide generative AI for iPhones and confirm the value of Google’s work on Gemini. 

Sacconaghi suggested that Apple doesn’t need to own the AI model on iPhones to benefit. Instead, they could earn a commission from Google. Currently, Google charges $19.99 per month for its Gemini Advanced app.

Companies haven’t made big money from generative AI yet. It’s expensive to run large language models in the cloud. Consumers and businesses are just starting to pay for this new technology. But they believe profits will go up as AI gets better and it becomes cheaper to build data centers for it.

A fresh agreement between Apple and Google might catch the attention of U.S. regulators. The Justice Department is close to finishing a lawsuit against Google. They claim Google harmed competition by paying Apple to be the default search engine on the iPhone and other services.

Judge Amit P. Mehta from the U.S. District Court for the District of Columbia is overseeing the trial without a jury. A decision is anticipated later this year.

What do we think?

In my opinion, if Apple and Google team up for generative AI on iPhones, it could be a game-changer. Google’s Gemini could bring new features, but there might be challenges. Google faced criticism for its AI tech before. 

However, if they fix issues, it could boost both companies. Also, regulators might take notice, especially with ongoing lawsuits against Google. Overall, it’s a big move with potential, but there are hurdles to overcome.