• by Laurie Sullivan  @lauriesullivan, March 18, 2024

Apple could expand its search agreement with Google by building the company's artificial intelligence (AI) model Gemini into the iPhone.

Ongoing negotiations will allow Apple to license Gemini -- Google’s set of generative AI models -- to power some new features coming to the iPhone software this year, reported Bloomberg, citing people familiar with the situation.

Apple also has held discussions with other companies such as OpenAI.

Samsung Electronics in January released a new smartphones with AI features powered by Google Gemini.

Google has built several versions of Gemini, allowing it to run on everything from data centers to mobile devices. The technology is available in Ultra, Pro and Nano versions.

Each one is designed for different uses. All are multimodal, with the ability to handle a range of inputs. 

A deal between Apple and Google would continue to extend the reach of the company known for its search technology, giving Gemini access to billions of potential users.

Despite Apple's most recent acquisition of AI firm DarwinAI -- a startup focused on making AI systems smaller and faster -- it also could suggest that Apple isn’t as far along with its AI efforts as some might have hoped.

Chelsea Alves, a consultant with UNmiss, a company that creates SEO content, believes Apple could integrate DarwinAI's technology into its vision-based technology and expand support for mobile computing. 

Apple has acquired more than 32 AI companies since 2010, according to CB Insights. The data and analyst firm estimates Apple has acquired the most AI businesses of any major tech company. A report by the firm analyzes AI investments in generative AI (GAI), stating equity funding in 2023 topped $21.8 billion across 426 deals.

OpenAI was the biggest beneficiary last year, with $10 billion in investments. In terms of the search space, new entrants such as Perplexity raised money at valuations of $520 million, according to Business Insider, and You.com raised more than $45 million from about 10 different investors.

Google, which will has scheduled its annual Google I/O conference in May, is preparing to announce new AI-supported capabilities.