Technology

Apple’s (AAPL) potential partnership with Google parent company Alphabet (GOOG, GOOGL) is part of the iPhone maker’s strategy to incorporate artificial intelligence into its flagship product, Wedbush Securities said. The technology giants are in talks for Apple to license Google’s Gemini AI engine and power the generative AI features Apple is seeking to build into the iPhone’s software this year, Bloomberg News reported late Sunday. Apple also recently held talks with Microsoft-backed (MSFT) OpenAI over licensing its technology, Bloomberg reported, citing sources. Apple, Alphabet, and OpenAI didn’t immediately respond to MT Newswires’ requests for comment. Alphabet’s shares advanced 5.7% in Monday trading, while Apple gained 2.6%. The move reflects Apple’s broader AI strategy after including its own AI App Store and additional features into the iPhone 16, Wedbush said in a Monday client note. It also represents a “major win” for Google to get onto the Apple ecosystem with “clearly […]

Wedbush’s Dan Ives believes that a potential partnership between Apple Inc. (NASDAQ:AAPL) and Alphabet Inc.’s (NASDAQ:GOOGL) (NASDAQ:GOOG) Google could be a game-changer for both companies. What Happened: Ives took to X, formerly Twitter, to share his thoughts on the potential partnership between Apple and Google. He described it as a crucial element in Apple’s AI strategy, which could significantly enhance the company’s AI capabilities. “This potential Google strategic partnership is a missing piece in the Apple AI strategy and combines forces with Google for Gemini to power some of the AI features Apple is bringing to market.” “For Apple this will give them the foundation/blueprint to double down on AI features,” Ives added. This potential Google strategic partnership is a missing piece in the Apple AI strategy and combines forces with Google for Gemini to power some of the AI features Apple is bringing to market. For this will give them the foundation/blueprint to double down on AI features

Apple Inc (NASDAQ:AAPL) is in active discussions with Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) for building Google’s Gemini AI engine into the iPhone. If Apple can reach an agreement with Google or OpenAI, it could add incremental hardware features in 2025, according to BofA Securities. The Apple Analyst: Wamsi Mohan maintained a Buy rating and price target of $225 for Apple. The Apple Thesis: Al could drive a “multi-year upgrade cycle” and allow the company to improve gross margins going ahead, Mohan said in the note. Check out other analyst stock ratings. “It remains unclear if Apple will choose to leverage a cloud-based model that could potentially have higher latency vs. on device option,” the analyst wrote. “We view incremental on-device functions especially in 2025,” he added. Given Apple’s installed base of 2.2 billion, a licensing deal based on usage volumes could become a huge cost, while a fixed license for cloud-based usage would not be economically