Apple's Partnership With Google The 'Missing Piece' In Tim Cook's AI Strategy, Says Wedbush's Dan Ives

Wedbush's Dan Ives believes that a potential partnership between Apple Inc. AAPL and Alphabet Inc.'s GOOGL GOOG Google could be a game-changer for both companies.

What Happened: Ives took to X, formerly Twitter, to share his thoughts on the potential partnership between Apple and Google.

He described it as a crucial element in Apple’s AI strategy, which could significantly enhance the company’s AI capabilities.

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“This potential Google strategic partnership is a missing piece in the Apple AI strategy and combines forces with Google for Gemini to power some of the AI features Apple is bringing to market."

"For Apple this will give them the foundation/blueprint to double down on AI features,” Ives added.

This potential Google strategic partnership is a missing piece in the Apple AI strategy and combines forces with Google for Gemini to power some of the AI features Apple is bringing to market. For 🍎 this will give them the foundation/blueprint to double down on AI features🍎🔥

— Dan Ives (@DivesTech) March 18, 2024

Why It Matters: The potential partnership between Tim Cook‘s Cupertino giant and Google could be a significant development for both companies.

Apple is considering integrating Google's Gemini, a set of generative AI models, into its new iPhone software features. This move could potentially position Apple as a leader in personalized AI.

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Apple’s potential use of Gemini would also be a significant win for Google, as it could result in substantial annual payments from Apple and distribution across approximately 1.4 billion active devices.

This potential deal would build on the existing search partnership between the two tech giants.

Discussions between the two companies are centered around letting Apple license Gemini to help power some new features that are planned for the coming iPhone models.

Price Action: At the time of writing, Apple’s stock was trading 2.32% high, while Alphabet Inc Class A stock was up 5.92%, according to Benzinga Pro.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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