CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
According to an unconfirmed Bloomberg report, Apple (AAPL 173 ****) and GOOGL are in talks that would allow AAPL to license GOOGL’s Gemini large-language model to power new features coming to iOS 18, with a focus for on-device capabilities. While we don’t expect to hear confirmation about any deal until AAPL’s WWDC in June (AAPL is also believed to be having conversations with OpenAI), we do think that GOOGL is best positioned to win any external deal for AI on AAPL’s devices given the strong search partnership the two already have. GOOGL has already demonstrated new AI capabilities with its Samsung relationship, with popular features on those phones including language translation, support of multimodal inputs for search, ability to modify/alter photos, turn videos to slow motion, and summarize group texts. We think a partnership would be a notable positive for GOOGL, as it would expand Gemini’s reach across AAPL’s installed base of 2B+ devices and instantly make it the AI system of choice for mobile devices.