Impact of rumored AI partnership between Google and Apple

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In today’s big story, we look at what a potential partnership between Google and Apple AI capabilities would mean both for businesses and the industry as a whole.

What’s on deck:

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The big story

Google, Apple, AI

Two of the world’s largest technology companies are reportedly discussing a partnership that would shake up the AI ​​industry.

Apple plans to integrate Google’s AI model, Gemini, in the iPhone.

Nothing is finalized, so the potential terms of the deal are unclear. But the broad outline of the deal could see Apple licensing Gemini to power new features on iPhone software as early as this year, according to a report from Bloomberg’s Mark Gurman.

The rumors come at the perfect time for both parties.

For weeks, Google publicly trashed because of Gemini being too “woke”. The criticism was so strong that CEO Sundar Pichai admitted the company “got it wrong” in a memo. More generally, insiders wonder whether Google can still be considered the leader of the tech world. avant-garde of “cool”.

Meanwhile, Apple has drawn attention to what it is not do in AI. The company was visibly silent around its AI projects compared to peers like Google, Microsoft, Meta and Amazon.

CEO Tim Cook hinted at a bigger technology announcement later this year at Apple’s annual shareholder meeting. But the company appears to be catching up, as it has reallocated resources from its electric vehicle scrapped to focus on generative AI.

By partnering, Google’s Gemini gets a much-needed vote of confidence and access to the iPhone’s large user base. And Apple is keeping pace in the AI ​​race by outsource some complicated tasks of the company, writes Business Insider’s Hasan Chowdhury.

Wall Street seems to agree. Shares of the two companies rallied behind the reportwrites BI’s Phil Rosen.

Apple and Google have a history of successful partnerships.

Google has been paying Apple for years to be the default search engine on the iPhone. Apple is getting a nice chunk of change – it seems $18 billion in 2021. Google maintains its place as the essential search engine on the Internet. It’s a win-win.

This rapprochement is, however, not without criticism. It is a key element of Justice Department Lawsuit Against Google for “anti-competitive and exclusionary” behavior in a historic essay for Big Tech which started last year.

So even if Apple and Google reach an agreement, they could still face serious regulatory challenges. (And to be clear, Bloomberg’s report mentions that Apple has had discussions with OpenAI, the creator of ChatGPT, about a similar arrangement, so there’s still a long way to go.)

But if the history of the Apple-Google deals has taught us anything, their combined power is almost unmatched.

3 things about the markets

1. A goodbye to Goldman from one of the greatest women on Wall Street. Stephanie Cohen leaves the bank to Join Cloudflare as its first-ever Chief Strategy Officer. She discussed her more than 20-year career at Goldman, her advice to the bank’s executives and why she is diving headlong into technology.

2. Wall Street is optimistic about a soft landing. This is a “risky” approach for many investors, who are betting that the economy will do well. The Street is rather bullish thanks to strong economic growth and the prospect of lower interest rates is underway.

3. Japan’s central bank raised interest rates for the first time in 17 years. The last time the Bank of Japan raised borrowing costs was in February 2007. Market reaction to this decision was mutedwith Tokyo’s benchmark Nikkei 225 index closing up 0.7% on Tuesday.

3 things in technology

1. Instagram beats TikTok. Instagram has far surpassed TikTok in terms of global downloads last year, using its main photo feature and reels to woo consumers. Yet people spend more time on TikTok than on Instagram.

2. Here’s what designers were talking about at SXSW. Although AI was a popular topic of discussion, many panels did not address its downsides. Meanwhile, some creators and employees said they were bored to talk about a possible ban on TikTok.

3. Nvidia has unveiled its next-generation chip. CEO Jensen Huang revealed the Blackwell B200 GPU at the semiconductor giant’s “Woodstock of AI” event on Monday. Chips “are the engine of this new industrial revolution,” he said.

3 things in business

1. Recessions have a strange benefit: they help us live longer. New research has found that the worse the economy, the longer we live. It’s because it reduces pollution — with less activity (fewer people driving to work, factories and offices slow down), the air becomes cleaner.

2. The billionaire owner of 5-Hour Energy fought his way to Sports Illustrated publishing — now he’s lost it. Late last year, Manoj Bhargava took control of Sports Illustrated publisher Arena Group, quickly laying off dozens of employees. Her erratic behavior and non-payment of license feeshowever, caused him to lose SI.

3. Reddit CEO defended his huge salary. Steve Huffman said in a Q&A video that his $193 million compensation package was based on both salary and stock. Some users on Quora, Reddit and

In other news

What’s happening today

• The US presidential primary elections will be held in Arizona, Florida, Illinois, Kansas and Ohio.

• NCAA March Madness starts today.

The Insider Today team: Dan DeFrancescoassistant editor and presenter, in New York. Hallam Bullockpublisher, London. Jordan Parker Erbpublisher, New York. George Gloverjournalist, in London.