Apple Inc. is in talks to build Google's Gemini artificial intelligence engine into the iPhone, Bloomberg News reported on Monday, citing people familiar with the situation.The negotiations are about licensing Gemini for some new features coming to the iPhone software this year, the report said, adding that the terms or branding of an AI agreement or how it would be implemented have not been decided.Alphabet shares jumped more than 6% in early U.S. trading, while Apple was up 2.5%.
The firms have a years-long partnership that makes Google the default search engine on Apple's Safari web browser, and a genAI tie-up may help the Alphabet unit navigate fears that services like ChatGPT could threaten its search dominance.But the agreement could also invite sharper scrutiny from U.S. regulators, who have sued Google on grounds that it unlawfully stifled competition by paying billions of dollars to Apple to maintain its monopoly in search.