From Business Insider: 2024-06-12 05:00:00

Apple executive Craig Federighi announced during the WWDC that Apple is partnering with OpenAI to integrate ChatGPT with Siri, setting the tech world abuzz. Apple currently receives $20 billion annually from Google to have its search engine as the default on iPhones. Federighi hinted at a potential partnership with Google’s Gemini AI model.

Apple’s renewal of the $20 billion Google deal for search on iPhones is a major source of revenue. Now, Apple’s integration with OpenAI may lead to a similar lucrative deal with Google for its Gemini AI model.

The potential for a new $20 billion deal with Apple and Google for AI model distribution on Apple devices has caused a stir in the tech industry. Federighi’s mention of distributing Google Gemini in addition to OpenAI’s ChatGPT at WWDC led to a 7% rise in Apple’s shares.

Negotiations between Apple and Google for distributing the Gemini model have become a talking point. Google’s potential need for user data to train its AI models could be a major point of contention in the deal-making process.

Apple’s integration with OpenAI and mention of distributing Google Gemini on Apple devices hint at a potential bidding war for AI distribution deals. The implications of these partnerships could result in large payments and significant revenue generation for Apple and Google.

The emergence of generative AI and the potential for distribution deals between Apple, OpenAI, and Google have raised significant questions regarding data access, privacy, and monetization. Apple’s emphasis on user privacy and data security may be a critical factor in negotiations with Google regarding Gemini model distribution.



Read more at Business Insider: Apple, OpenAI, Google and the Biggest Deal in AI. Who’s Getting Paid?