Alphabet, the parent company of Google and YouTube, experienced significant movement in the stock market on Monday following reports of a potential collaboration with another major player, Apple.
According to Bloomberg, Alphabet is allegedly in discussions with Apple to integrate its Gemini artificial intelligence technology into the upcoming version of the iPhone, as well as potential future models.
This news drove Alphabet’s stock price up by around 7% to approximately $151 per share on Monday, while Apple also saw an increase of about 2.4% to roughly $177 per share.
Possible AI Enhancements in New Apple Update
Reportedly, Alphabet and Apple are actively negotiating a partnership that could see Gemini powering certain features in the upcoming iOS 18 update, expected to be announced at Apple’s Worldwide Developers Conference in June.
However, it’s important to note that these reports are based on information from sources familiar with the matter and have not been officially confirmed by either company. Bloomberg also mentioned that Apple has been in talks with OpenAI.
What is more certain is that Apple’s new operating system will include significant improvements in artificial intelligence. Bloomberg’s tech reporter Mark Gurman suggested in January that this could be one of the most substantial updates for the iPhone, focusing on AI advancements.
During the last earnings call in February, CEO Tim Cook emphasized Apple’s commitment to investing in technologies that shape the future, including artificial intelligence.
Potential Implications for Alphabet
Among the major tech stocks, Apple and Alphabet have lagged behind in recent months. While Apple has faced challenges with slowing sales growth for its key products, Alphabet has seen a decline in its cloud-computing market share.
Alphabet introduced its Gemini Ultra generative-AI platform in February, aiming to enhance its AI capabilities. A partnership with Apple to integrate its AI technology into Apple products could be a significant revenue opportunity for Alphabet.
Although it’s still early to draw definitive conclusions as the partnership remains speculative, the market’s response, particularly towards Alphabet’s stock, highlights the potential significance of such a collaboration in the competitive AI landscape.
