Bloomberg , citing unnamed sources, said Apple and Google are actively negotiating for Gemini to master some new features coming to the iPhone this year. In addition, Apple has recently held discussions with OpenAI and considered using their models.

If the Apple-Google deal goes through, it would build on the two companies’ search partnership. For years, Google has paid Apple billions of dollars a year to make its search engine the default option in the Safari web browser on iPhones and other devices. The two sides have yet to agree on the terms of the AI ​​deal or how it will be implemented, according to the people.

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Apple is preparing new features for iOS 18 based on its own AI model. (Photo: Bloomberg)

The deal would give Gemini a significant advantage with billions of potential users. But it could also be a sign that Apple isn’t as far along with its own AI efforts as some had hoped, and threatens to draw further antitrust scrutiny.

Apple is preparing new iOS 18 features based on its own AI models, but that innovation will focus on features that work natively on devices, rather than those delivered through the cloud. So the company is looking for a generative AI partner to handle complex tasks like generating images and writing essays based on simple prompts.

Bloomberg reported that Apple has been experimenting with a large language model called Ajax since early last year. Some employees have also tried a basic chatbot called Apple GPT. But Apple’s technology still lags behind tools from Google and other rivals, so a partnership seems like a better option.

For Google, partnering with Apple could be a big boon for the company’s AI efforts. More than 2 billion Apple devices could be home to Gemini by the end of the year. In January, Samsung introduced a new smartphone with Gemini-powered AI features.

Still, the partnership between the two Silicon Valley giants is likely to attract regulatory attention. Google’s search deal with Apple is at the center of a lawsuit filed by the U.S. Department of Justice . The government alleges that the companies have acted as a single entity to strangle the mobile search market. Apple denies the allegations, saying Google’s search quality is superior to its rivals and that it’s easy for users to switch services on their iPhones.

In the EU, Apple and Google have also come under fire for their relationship, forcing Apple to make it easier for users to change their default search engine. As regulatory pressure mounts and artificial intelligence becomes more prevalent, the current search deal could eventually become less profitable for both. A new deal around AI could help offset that.

While negotiations between Apple and Google are ongoing, any deal, if any, won’t be announced until June, when Apple holds its WWDC developer conference. It’s also possible that the two sides won’t reach an agreement and Apple ends up choosing another AI provider, like OpenAI.

Gemini is a notable name, but it's not without controversy. Last month, users discovered that the system sometimes incorrectly identified the race of individuals depicted in generated images. Google CEO Sundar Pichai called the issue "completely unacceptable" and image generation was halted.

Meanwhile, Apple CEO Tim Cook has promised a big AI announcement this year. The plan is especially important as investors look for new sources of growth at the iPhone maker, which canceled its self-driving car project earlier this year. Some of the engineers involved in the project have been moved to the artificial intelligence division.

(According to Bloomberg)