This illustration taken on April 20, 2018 in Paris shows Google, Amazon, Facebook and Apple apps, as well as the reflection of a binary code displayed on a tablet screen.
Lionel Bonaventura | AFP | Getty Images
the alphabet Shares rose more than 7% Monday morning following a report on the tech giant apple Talks are underway to license Gemini for future iPhones. Apple shares rose more than 2%.
Gemini is Google's suite of generative AI tools, from chatbots to programming assistants.
According to a Bloomberg report, Apple is in talks with Alphabet-owned Google to allow the iPhone maker to license and build its Gemini AI engine into the iPhone.
Citing people familiar with the matter, Bloomberg said the two tech giants are “in active negotiations” for Gemini to power some new features scheduled for release for the iPhone software later this year.
Apple's next big iPhone update, iOS 18, is expected to take place during the Worldwide Developers Conference. That's when the company talks more about its plans for generative AI, and when it typically talks about its latest iPhone software before it's released to consumers in the fall.
Apple CEO Tim Cook said the company is “investing significantly” in artificial intelligence during the company's annual shareholder meeting in February.
“Later this year, I look forward to sharing the ways in which we can break new ground in generative AI, another technology that we believe can redefine the future,” Cook said.
The company also recently held discussions with OpenAI and considered using its model, according to sources cited by Bloomberg.
However, the report stated that “the two parties have not yet decided on the terms or branding of the AI agreement or finalized how it will be implemented.”
CNBC was unable to independently verify Bloomberg's report. Apple declined to comment and Alphabet did not immediately respond when contacted by CNBC.
— CNBC's Katrina Bishop contributed to this report.
