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Apple’s AI Strategy: Integrating Google Gemini and Expanding to Subscription Features
Last month, Apple announced that the only AI model integrated with its devices at the launch of Apple Intelligence was ChatGPT. However, analyst Mark Gurman reported in his Bloomberg “Power On” newsletter that Apple is planning to add Google Gemini to its list of AI partners by the fall. The rumors about Gemini being a part of iOS 18 chatbot have been circulating for some time, and Apple’s head of software, Craig Federighi, hinted at a deal with Google immediately after the keynote.
Anthropic has also been implicated in these rumors, and Gurman suggests that Apple could announce a deal with this company in the future. However, Meta was quickly excluded because its Llama chatbot was not considered good enough.
According to Gurman, Apple is looking to make artificial intelligence a direct source of profits rather than just a set of features to promote its hardware products. He suggests that Apple could launch Apple Intelligence features accessible only via subscription, although this may not happen in the near future. Initially, Apple Intelligence will be available for the iPhone 15 Pro, 16, and 16 Pro but it’s unclear if this first version will be enough to drive users to buy a new device in large numbers. In the meantime, Apple will still receive a portion of AI revenue through in-app purchase commissions for its partners’ chatbot subscriptions. Third-party AI services could be a temporary solution for Apple as it gradually rolls out its own generative AI system.