Imminent Agreement Between Apple and Google to Integrate Artificial Intelligence on iPhone

Last month, it was revealed that the only AI model integrated with Apple devices upon the launch of Apple Intelligence would be ChatGPT. However, according to analyst Mark Gurman in his Bloomberg “Power On” newsletter, Apple is expected to announce at least one more deal to include Google Gemini by the fall. Gemini has been a subject of iOS 18 chatbot rumors along with OpenAI, and Apple’s software head, Craig Federighi, hinted at a potential deal with Google following the keynote. Rumors also implicate Anthropic, with Gurman suggesting a potential partnership with Apple in the near future, possibly as early as this fall. Meta was ruled out quickly as its Llama chatbot was deemed insufficient.

Gurman suggests that Apple is aiming to turn artificial intelligence into a direct source of revenue rather than just using it as features to promote their hardware products. It is speculated that Apple may introduce subscription-based Apple Intelligence features, but this is not expected to happen soon. Initially, Apple Intelligence will only be accessible on the iPhone 15 Pro, 16, and 16 Pro, with uncertainty about whether this will be enough to drive mass device upgrades. In the meantime, Apple will still earn revenue through in-app purchases commissions from their partners’ chatbot subscriptions. Utilizing third-party AI services is seen as an interim solution for Apple as they gradually introduce their own generative AI system.