Apple’s Potential Gemini AI Licensing Boosts Alphabet Shares by 7%

Key Point

  • Apple stock also rose more than 2%
  • Alphabet shares rose by more than 7% on Monday after reports suggested active negotiations between Alphabet and Apple regarding potential features for the iPhone, possibly involving Gemini technology.

Apple shares rose more than 7% on Monday, March 18, following a Bloomberg report that Apple is in talks with Alphabet-owned Google to license Google’s Gemini AI engine for future iPhones

The negotiations are for Gemini to power certain new features due to be released to the iPhone software later this year. Apple’s next big iPhone update, iOS 18, is expected during its Worldwide Developers Conference, where the company may reveal more about its plans for generative artificial intelligence.

Gemini is Google’s suite of generative artificial intelligence tools, ranging from chatbots to coding assistants1. The Bloomberg report cited people familiar with the matter, stating that the two tech giants are “in active negotiations” for Gemini to power certain new features in the iPhone software.

Apple CEO Tim Cook has previously stated that the company is “investing significantly” in AI and plans to share more about its AI strategy later this year. Apple has also held discussions with OpenAI, considering using its model for generative AI applications. However, the terms or branding of an AI agreement between Apple and Google, as well as the implementation details, have not been finalized.

The news of these talks has led to a rise in Alphabet shares, as investors see potential in the partnership between the two tech giants. Apple stock also rose more than 2% on the news.

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