Benzinga - by Johnny Rice, Benzinga Staff Writer.
News broke recently that Google (NASDAQ:GOOL) was in talks with Apple (NASDAQ:AAPL) to integrate its Gemini AI into iPhones. The deal would be a huge boon for Google as it would likely be very lucrative, while also enhancing the reputation of the company’s AI, which has previously been plagued with public image issues. For Apple, it would allow the company and its products to stay ahead of the AI curve.
Falling Behind When OpenAI released ChatGPT 3 to the public at the end of 2022, it set off an arms race in Silicon Valley. Microsoft (NASDAQ:MSFT) is partnered with OpenAI and is the current king of the hill; the company's stock is up almost 50% in a year. Apple and Google, on the other hand, have struggled to keep up.
Google, in a rush to keep up with Microsoft, released its answer to ChatGPT, Bard. Rebranded to Gemini, Google's AI platform has been plagued with issues. Prone to hallucinations, the LLM has been a flop up to this point.
Apple has fared even worse. The once-largest company lacks an AI platform altogether. How the innovative tech behemoth was caught so unaware can only be speculated on, but the damage to Apple's image is real. The company's stock is up less than 4% in a year while the market is up nearly 30%.
Saving Grace Although the details are still being hammered out, a deal between these two companies would be a huge boost for both. Google's stock jumped 5% on the day the news broke and is up another 3% since. Apple's stock had a more modest 0.5% bump on the day but has continued to slide since, due to other bad news coming from the company.
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