Alphabet stocks rose by more than 4% after a report revealed that Apple is in talks to license Gemini AI for iPhone devices.

Alphabet:
Stocks closed more than 4% higher on Monday following a report about the tech giant Apple engaging in discussions to license Gemini for future iPhones. Apple stocks closed higher by less than 1%.

Gemini is a suite of generative artificial intelligence tools from Google, ranging from chatbots to programming assistants.

According to Bloomberg’s report, Apple is in talks with Google-owned company Alphabet to allow iPhone to license and integrate its own Gemini AI engine into iPhones.

Citing people familiar with the matter, Bloomberg stated that the tech giants are “actively negotiating” for Gemini to power some new features slated for release for the iPhone software later this year.

The next major update for the iPhone, iOS 18, is expected to be released during the Worldwide Developers Conference. This is when the company usually elaborates on its plans for generative artificial intelligence and typically discusses its latest iPhone software before releasing it to consumers in the fall.

Tim Cook, CEO of Apple, mentioned during the company’s annual shareholder meeting in February that the company is “investing heavily” in artificial intelligence.

Cook expressed his anticipation, saying, “In the upcoming months, I’m excited to unveil how we can explore new horizons in generative AI, a technology we’re confident will reshape tomorrow.”

The company also recently held discussions with OpenAI and considered using its model, according to sources cited by Bloomberg.

However, the report stated, “The parties have not finalized the terms or brand of the artificial intelligence agreement or finalized how it will be implemented.”