Apple Inc. is in talks to build Google’s Gemini artificial intelligence engine into the iPhone, according to people familiar with the situation, setting the stage for a blockbuster agreement that would shake up the AI industry.

The two companies are in active negotiations to let Apple license Gemini, Google’s set of generative AI models, to power some new features coming to the iPhone software this year, said the people, who asked not to be identified because the deliberations are private. Apple also recently held discussions with OpenAI and has considered using its model, according to the people.

Edit: Apple in Talks With Google to Bring Gemini AI Features to iPhone (macrumors, no paywall)

[…] According to Gurman, however, Apple is focusing on features that operate on-device and do not require an internet connection. To power additional cloud-based generative AI features, such as the ability to create images and write essays based on single prompts, Apple is seeking a partner that has the necessary large-scale hardware infrastructure and compute capabilities already in place.

According to previous reporting by Gurman, Apple has been internally testing an “Apple GPT” rival that could compete with OpenAI’s ChatGPT […]. However, the technology is still not as advanced as tools from Google and other rivals, making a partnership look like the better option, according to the latest report.