Stock surge for Alphabet Corporation on Friday
In a potential game-changer for the tech industry, Apple is reportedly in talks with Alphabet to integrate the latter's Gemini AI into Siri, its voice assistant. This collaboration, if confirmed, could significantly enhance Siri's performance and AI capabilities.
According to sources close to the matter, Apple is also holding discussions with OpenAI and Anthropic, and is currently testing several large language models—both its own and those from third parties—without having made a final decision. The intention to hire Alphabet's Gemini AI team for Siri's redesign was initiated by Apple.
The new generation of AI-enabled iPhone smartphones was intended to pair with the much smarter Siri. However, engineering setbacks have delayed the release of the improved Siri from last year. The Siri redesign is aimed at improving Apple's artificial intelligence capabilities.
The potential partnership between Apple and Alphabet could have significant implications for the tech industry. For Alphabet, this partnership could potentially broaden its market reach, as Apple dominates the smartphone market with a 27.5% share, while Samsung holds the second largest share at 21.6%.
It's worth noting that Alphabet sells few phones, and much of Android's success benefits Samsung, making this partnership less risky for Alphabet. Apple could stand to gain billions in potential license fees from this partnership.
This partnership does not necessarily imply a direct competition between Alphabet and Apple in the smartphone market. Apple is planning to hire Alphabet's Google to redesign Siri, not to compete in the smartphone market.
The hiring of Alphabet's Gemini AI team by Apple suggests a collaboration between the two tech giants. This potential partnership could indicate a shift in Apple's AI capabilities. The Federal Reserve Chairman Powell hinted at the Federal Reserve conference in Jackson Hole, Wyoming, that he's considering lowering interest rates this year, which could potentially impact the tech industry's growth.
It's unclear if the previous plan for Siri's redesign involving OpenAI and ChatGPT is still active. Apple is open to switching from OpenAI to Alphabet for Siri's redesign, according to reports. Alphabet stands to gain significantly from this partnership, as it could potentially enhance Siri's performance and AI capabilities, and potentially billions in potential license fees.
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