Apple considering Google Gemini AI integration on iPhones despite perceived brand image and antitrust worries

Apple is reportedly discussing the inclusion of Google's Gemini AI in its iPhones, despite ongoing antitrust scrutiny for both companies. The Cupertino-based tech giant is looking to license Google Gemini for upcoming AI features on its iOS platform, according to Bloomberg sources. Additionally, Apple has engaged in discussions with OpenAI, the creator of ChatGPT, regarding a potential AI collaboration. Microsoft, a major investor in OpenAI, is also competing with Google to advance AI technologies. Following the news, Alphabet, Google's parent company, saw a nearly 7% increase in stock value, while Apple experienced a 3% rise. Meanwhile, Microsoft's stock remained unchanged.

Representatives from Apple, Google, and OpenAI did not respond immediately to requests for comment.

The financial terms and specifics of the potential deal have not been finalized. It's unclear how the partnership would be branded or implemented. If realized, Google's AI tool would gain access to over two billion Apple devices, positioning the company as a frontrunner in the AI race.

A collaboration between Apple and Google would essentially extend their contentious partnership in online search, which faced significant scrutiny during a landmark antitrust case led by the Justice Department.

“This is bold behavior, to say the least,” remarked a well-informed tech policy insider. “Google is currently awaiting a verdict on similar issues related to search defaults, while Apple itself is reportedly facing an impending antitrust complaint from the DOJ.”

Reportedly, Google paid Apple around $18 billion in 2021 to ensure its search engine is the default option on the Safari browser used by iPhones. A judge is expected to rule on whether Google has maintained an illegal monopoly later this year.

If a partnership is established, Apple would utilize Google Gemini for tasks like generating images and providing written responses to user queries. This decision comes despite Google's recent disabling of Gemini's image generation feature due to controversial output, including unconventional images such as female NHL players, Black Vikings, and Founding Fathers, as well as an Asian woman dressed as a Nazi-era German soldier. Google co-founder Sergey Brin acknowledged the company's misstep in image generation. Allegations of political bias emerged following the incident, exacerbated by the discovery of "woke" tweets from Gemini's product lead.

Meanwhile, Apple has been actively engaging with President Biden's administration, with CEO Tim Cook making several visits to the White House, as the company addresses various allegations of anticompetitive conduct. The Department of Justice is reportedly on the verge of filing a significant antitrust lawsuit against Apple.

Sacha Haworth, Executive Director of the Tech Oversight Project, remarked that the timing of this announcement isn't coincidental, especially with a potential antitrust case looming. According to Haworth, Apple's collaboration with Google appears to be an attempt to stifle competition and safeguard their respective market dominance.

Haworth emphasized that Google and Apple have faced criticism for operating in a manner that resembles a single entity. This partnership raises concerns about consolidation within the AI sector, prompting calls for investigation by the Department of Justice and the White House.

Recent warnings from antitrust watchdogs suggest that Google continues to engage in anticompetitive practices, even amidst ongoing legal proceedings. Critics, including outgoing Republican congressman Ken Buck, have cautioned that Google may exploit its AI capabilities to reinforce its monopoly in online search unless regulatory action is taken.

At trial, Google has defended itself against criticism by asserting that customers choose its search engine because it offers the best product, and its substantial payments to Apple and mobile carriers like AT&T for default status are justified compensation.

Meanwhile, European antitrust regulators are compelling Google to simplify the process for users to switch their default search engine.

Wedbush analyst Daniel Ives suggested that if the partnership proceeds, it would represent a significant victory for Google to gain access to Apple's extensive user base. According to Ives, this collaboration would provide Apple with the foundational technology to enhance AI features, potentially transforming future iPhone releases, such as the iPhone 16.

Apple is anticipated to unveil more information about its AI strategy during its Worldwide Developers Conference in June. The report indicated that Apple is unlikely to disclose any details about its AI plans prior to this event.