Alphabet Soars on Apple-Gemini AI Rumors

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Alphabet Shares Surge on Reports of Apple-Gemini AI Licensing Talks

Shares of Alphabet experienced a significant 7% increase Monday morning after reports surfaced of Apple engaging in discussions to license Google's Gemini AI suite for integration into future iPhone models.  Apple's shares also saw a rise of over 2%.

Gemini, developed by Google, encompasses a broad spectrum of generative artificial intelligence tools, including chatbots and coding assistants.

Bloomberg reports that Apple is actively negotiating with Google, a subsidiary of Alphabet, to potentially license and incorporate the Gemini AI engine within the iPhone ecosystem.

Sources familiar with the negotiations, as reported by Bloomberg, indicate that the two tech leaders are deeply engaged in discussions surrounding the integration of Gemini to power innovative features planned for a future iPhone software release.

iOS 18, Apple's highly anticipated iPhone update, is likely to be unveiled at the company's annual Worldwide Developers Conference. This event traditionally serves as a platform to showcase Apple's latest software advancements and could offer insights into their generative AI strategy.

During the company's shareholder meeting in February, Apple CEO Tim Cook emphasized significant investments in the AI domain.

"I anticipate eagerly sharing breakthroughs within the realm of generative AI later this year. This technology possesses the immense potential to transform the future," Cook remarked.

Bloomberg's sources further suggest that Apple has had parallel discussions with OpenAI, considering the possibility of utilizing their AI model.

Nevertheless, the report clarifies that "the terms of a potential AI agreement have yet to be established, nor has the branding or implementation methodology been finalized."