Apple’s Gemini AI Deal in the Works? Alphabet Stocks React with 7% Surge

Alphabet’s stock went up more than 7% on Monday morning after news that Apple is in talks to license Gemini AI for future iPhones. Apple’s stock also went up by more than 2%.

Google’s generative artificial intelligence tools are called Gemini. They include chatbots and code helpers, among other things.

According to a Bloomberg story, Apple is talking with Google, part of Alphabet, to license the Gemini AI engine and build it into future iPhone models. 

Bloomberg said that sources close to the situation said that the two tech giants are currently in “active negotiations” for Gemini to possibly drive some of the new features that will be added to the next version of the iPhone software later this year.

iOS 18, Apple’s much-anticipated big update for the iPhone, will be shown off at its Worldwide Developers Conference. This event is usually where Apple talks about its plans for creative AI and shows off its newest iPhone software before it goes on sale to everyone in the fall.

Tim Cook, CEO of Apple, said at the company’s annual meeting in February that the business is “investing significantly” in AI.

“Later this year, I look forward to telling you how we will break new ground in generative Gemini AI,” Cook said. “This is another technology that we think can change the future.”

Bloomberg cites people who say the company has also recently talked with OpenAI and considered using its model.

But, the report said, “the two parties haven’t agreed on the terms or branding of an AI agreement or agreed on how it would be put into action.”

CNBC could not check the Bloomberg story. Apple refused to comment, and when CNBC called Alphabet, they didn’t answer immediately.