Apple (APL) is negotiating with Google-parent ALifabet (Google) has licensed its “Gemini” artificial intelligence training model for use on iPhones, according to a report. Google stock rose on the news, following controversy over Google's Gemini-powered Zen AI chatbot.
X
On top of that Stock market today, Google shares rose 5.2% to 148.50 in early trading. Apple shares rose 0.9% to 174.23. Apple will use Gemini generative AI models to develop new features coming to iPhone software. Bloomberg reported.
Google Stock: Big Hit?
“This is a huge win for Google entering the Apple ecosystem and gaining access to Cupertino's gold-established platform,” Wedbush analyst Daniel Ives said in a statement.
He added: “For Apple, this will give them the foundation and technology roadmap to double down on the AI features currently being developed at Apple Park to ensure that the iPhone 16 will be a potential game changer around AI functionality.”
Additionally, the report said Apple is in talks with generative AI leader OpenAI. Microsoft (MSFT) is the largest investor in Open AI. Microsoft shares fell nearly 1% to 412.40 on Monday.
Newer generative AI models process “requests” such as web search queries that describe what a user wants to get. Generative AI technologies generate text, images, video and computer programming code on their own.
Speculation abounds over Apple's plans. Apple researchers are developing their own AI training models.
Apple AI upgrade for expected iPhones
“As AI-enabled tools become more mainstream, we think there will be a strong value proposition for enabling AI at the edge,” Evercore ISI analyst Amit Dharyanani said in a recent report. . Given their vertical integration and especially their control over their own silicon, Apple is only in a better position to expand it. Moat around the iOS ecosystem, but will enable an accelerated update cycle if the final implementation is deemed a big enough change.
Also, Google recently stopped allowing its chatbot technology to create images of humans. The move came after chatbot users created images of black founding fathers in American history and portrayed Nazis as people of color.
Also, reports say that problems arose after Google tried to train its AI software to consider diversity in responses.
Google acknowledged issues with “errors in some historical depictions”. Google chief executive Sundar Pichai said the chatbot's racially biased responses were “unacceptable”.
Apple, Google Internet Search Agreement
Apple and Google already have a relationship. Alphabet pays Apple to make Google web search engine optional on iPhones
The Justice Department's antitrust trial and verdict against Google is pending. The government alleges that Google maintains an Internet search monopoly “through exclusive distribution agreements that divert billions of search queries to Google every day.”
Meanwhile, Google's payments to Apple are under scrutiny in an antitrust case.
Google Stock
As of March 15, Google stock had advanced just 1% in 2024. However, Google stock is nearing its 50-day moving average.
Google stock is set to reclaim the 50-day line and clear Thursday's high of 143.59. This would provide initial entry into the stock with a 153.78 consolidation buy point. Apple stock retreated 10% in 2024.
Google Cloud Computing Conference
Additionally, the company is offering Google Cloud Next from April 9 to April 11. Google is expected to make artificial intelligence announcements at its annual event for enterprise customers.
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Follow Reinhardt Krause at X on Twitter @reinhardtk_tech For updates on artificial intelligence, cyber security and cloud computing.
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