Apple Is Sending Alphabet Stock Higher Monday: What’s Going On?

Alphabet Inc GOOG shares are trading higher Monday following reports suggesting Apple Inc AAPL is in discussions to integrate Google Gemini into iPhones.

What To Know: Apple and Google are in active negotiations over potentially building Google’s Gemini AI engine into the iPhone, according to Bloomberg.

People familiar with the matter reportedly said the discussions are centered around letting Apple license Gemini to help power some new features that are planned for the coming iPhone models. The two parties have not worked on terms or finalized exactly how it would be implemented, the people said.

The report indicates that Apple has also recently held discussions with OpenAI about potentially using its AI model to power the new phone features.

Apple currently has a partnership with Alphabet for the company’s Search product. For years, Google has paid Apple billions of dollars to make its search engine the default option when a user opens the Safari browser on Apple devices.

Both Apple and Google shares were trading higher following the report. Apple shares have lagged behind some of its mega-cap peers in recent months as investors await more information on the company’s AI strategy.

Apple has reportedly been testing its own large language model codenamed Ajax, but the company remains behind other big players in the AI space, according to the people. Apple’s Worldwide Developers Conference is set to take place in June and AI is expected to be the key focus.

Alphabet is not due to report earnings again until the end of next month. Analysts currently expect the company to report earnings of $1.51 per share and revenue of $78.58 billion, according to Benzinga Pro.

See Also: Apple Quietly Unveils New Multimodal AI With A Staggering 30B Parameters: Could It Power Text And Vision Features On iPhones?

GOOG Price Action: Alphabet shares were up 4.85% at $149.06 at the time of publication, according to Benzinga Pro.

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