Alphabet’s shares surged by 7% following reports that Apple is considering licensing Gemini AI for iPhones.

Monday morning saw Alphabet‘s shares rise by over 7% following reports that Apple is considering using Gemini for future iPhones. Additionally, Apple’s shares increased by more than 2%.

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Monday morning saw a more than 7% increase in Alphabet’s shares following reports of active negotiations between Alphabet and Apple regarding the use of Gemini for iPhone features this year. Concurrently, Apple’s shares rose by over 2%.

Gemini is Google’s collection of useful artificial intelligence tools. These tools include chatbots and coding assistants, designed to assist users with various tasks.

According to a report from Bloomberg, Apple is in discussions with Google’s Alphabet regarding the possibility of incorporating Google’s Gemini AI engine into the iPhone.

Bloomberg reports that insiders familiar with the situation have stated that Google’s Gemini AI engine could potentially be used to power upcoming iPhone features. Apple and Google are currently in active discussions regarding this possibility.

Apple is gearing up for its next major iPhone update, iOS 18, which is anticipated to be unveiled at the Worldwide Developers Conference. During this event, the company typically discusses its plans for new features, including generative artificial intelligence, before releasing the software to users in the fall.

During Apple’s annual shareholder meeting in February, CEO Tim Cook stated that the company is making substantial investments in AI.

“In the coming months, I’m eager to discuss our advancements in generative AI, a technology we believe holds great promise for the future,” Cook remarked.

According to sources cited by Bloomberg, the company has been in discussions with OpenAI and is considering utilizing its model.

The report indicates that both parties have not yet finalized the terms or branding of an AI agreement, nor have they determined how it would be implemented.

What is Gemini AI ?

Gemini, previously known as Bard, is Google’s chatbot created to compete with OpenAI’s ChatGPT. It was initially launched in March 2023 and later expanded to more countries. Originally based on PaLM and LaMDA models, it transitioned to the Gemini LLM in December.

In response to ChatGPT’s popularity, Google unveiled Bard in February 2023, showcasing it during the May 2023 Google I/O event. Then, in February 2024, Google merged Bard and Duet AI under the Gemini brand and introduced an Android app.

However, Gemini faced criticism in February 2024 for generating historically inaccurate images of people of color. While some praised its diversity, others criticized it as biased.

Gemini AI History

Google unveiled a new chatbot named Bard on February 6, 2023, powered by LaMDA AI technology. Initially, it underwent testing by a small group before a wider release later in the month. The introduction of Bard was aimed at competing with Microsoft’s ChatGPT, which was being integrated into Bing, marking a competitive phase between the two tech giants.

However, Bard’s debut faced challenges, including technical glitches during demonstrations and internal criticism, leading to a drop in Google’s stock value. Additionally, layoffs within the company added to the challenges.

Despite these setbacks, Google decided to move forward with Bard’s launch. Employees also began testing an updated version dubbed “Big Bard” in March.

Google introduced early access for Bard on March 21, 2023, allowing users in the U.S. and UK to join a waitlist. Unlike Bing Chat, Bard was presented as a standalone web application with a disclaimer cautioning users about potential inaccuracies or offensive content. Users were encouraged to provide feedback on Bard’s responses. Google executives framed Bard as a supplementary tool to Google Search, acknowledging uncertainty regarding its profitability.

Bard’s training involved third-party contractors, including workers from companies like Appen and Accenture. Reports surfaced alleging poor working conditions and low compensation for these contractors. Google also disclosed that Bard’s training incorporated publicly available data.

Following Bard’s launch, Google reorganized its Assistant team to prioritize Bard’s development. Controversies emerged, including allegations that Bard utilized data from ChatGPT without proper attribution, which Google denied. Internal concerns were raised about Google’s competitiveness in the AI field compared to independent researchers.

Google announced plans to enhance Bard by incorporating PaLM, a more advanced AI model, and by adding math and coding capabilities. Bard later gained coding assistance for over 20 programming languages. In response, Microsoft advertised Bing in the Edge browser to users accessing the Bard web app.

Google aims to integrate Bard into its ChromeOS and Pixel devices, signaling its commitment to expanding Bard’s accessibility beyond the web ap

 

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