Apple's iPhone AI Talks With Google and OpenAI Still Ongoing

Apple is in ongoing discussions with Google and OpenAI to use their generative large-language models as the backbone of new iPhone AI features, but no formal announcement is expected until the summer, according to Bloomberg.

Today's report follows the news earlier this week that Apple has been in talks with Google to integrate its Gemini AI engine into the iPhone as part of iOS 18.

Apple CEO Tim Cook has promised that the company will "break new ground" in AI this year, and iOS 18 is expected to play a big role. However, Apple's internal work is said to be focused on smaller-scale AI features that operate on-device and do not require an internet connection.

To drive more powerful 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.

Siri is expected to take advantage of the artificial intelligence improvements that Apple plans to bring in iOS 18. One leaker has suggested that Apple is planning to use large-language models to entirely revamp Siri and turn it into the "ultimate virtual assistant."

Bloomberg's Mark Gurman says that one of the specific features Apple is developing is an improved interaction between Siri and the Messages app, which would let Siri auto-complete sentences more effectively and answer complex questions.

But with the likes of Nvidia and other AI companies continuing to reshape the technology landscape, some investors are reportedly concerned that Apple will fail to keep up with the pace of change, and may not see the "hypergrowth" expected of it unless the iPhone maker can boost its credibility by deploying generative AI features this year.