Integrating Gemini into the iPhone will cost Apple billions of dollars

Apple and Google announced this week the (official) birth of their partnership. The two digital giants will work together to integrate Gemini into the iPhone, in particular with the aim of launching a new, more intelligent version of Siri. This association at the top was not without concessions for Apple.

In order to afford the services of one of the best AI on the market, Apple had to take out the checkbook. The iPhone maker reportedly spent billions of dollars to attract the services of Gemini, Google’s AI. Although the terms of the contract are not known in detail, several rumors suggest that Apple has agreed to pay $1 billion per year to use Gemini.

OpenAI said no

In his latest article on the subject, the Financial Times reveals that Open AI was contacted by Apple. Sam Altman’s company reportedly declined Apple’s offer, preferring to weaken a competitor rather than sign the biggest contract in its history. The firm believes in its proposition and is currently working on the launch of its first physical device.

She also recruited Jony Ive, one of the Apple designers behind the iPhone. With the power of its AI, ChatGPT and the genius of Ive, OpenAI hopes to carve out a place in the burgeoning market of virtual assistants based on artificial intelligence.

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Apple will work its own way

On the Cupertino side, the signing of this agreement with Google is welcomed as “the best and smartest” possible decisions in this situation. Apple will be able to use Gemini as a basis for the future Siri. It will be interesting to see how different this version of the iPhone’s virtual assistant will be from the current one.

Apple knows it, it is late in the AI ​​market. To catch up with the leading train (with Google, Meta and OpenAI), it must move quickly and in the right direction. The numerous departures in recent months probably don’t help.

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By: Keleops AG

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