Among the shocking news this week is that Apple will use Google's Gemini artificial intelligence (AI) model for Apple Intelligence after its own efforts did not meet targets. It is seen as a major victory for Google Gemini in the AI war since OpenAI was not selected.
This morning, a report came out from the Financial Times that said Apple paid Google around $1 billion to use Gemini. Although using Gemini, this model will be operated by Apple itself through their Private Cloud Compute browser to control customer privacy.
This multi-year contract is seen as quite profitable because Apple does not have to invest in developing its own model which also requires large investments in building data centers like Google, OpenAI, Microsoft and Meta are doing.
In the same report, OpenAI was also said to refuse to continue cooperation with Apple even though ChatGPT was integrated into Apple Intelligence at an early stage. There is no reason why OpenAI refused but speculation is that they are developing their own AI hardware with the help of Jony Ive. To ensure that there is no conflict of interest, the cooperation with Apple is not continued. The AI device currently being developed aims to replace the iPhone, perhaps as a smart pen or a necklace that hangs around the neck.
