On Wednesday, Alphabet Inc.’s GOOG GOOGL CEO Sundar Pichai revealed ongoing talks with Apple Inc. AAPL to integrate the company’s Gemini AI into iPhones, amid federal regulators’ push to rein in Google’s dominance in online search.
What Happened: Testifying in a landmark antitrust trial brought by the U.S. Department of Justice, Pichai said Google hopes to finalize a deal with Apple by mid-2025 to embed its Gemini artificial intelligence technology into Apple’s devices, reported Reuters.
The search and advertising giant doesn’t have an agreement with Apple in place yet, Pichai said during questioning by DOJ attorney Veronica Onyema.
According to Pichai, the deal would involve integrating Gemini into Apple Intelligence, the iPhone maker’s suite of upcoming AI features. He also confirmed that Google plans to test advertising within the Gemini app.
Why It’s Important: Pichai was testifying in Alphabet’s defense against DOJ proposals that aim to end the company’s lucrative agreements with Apple, Samsung Electronics SSNLF, AT&T Inc. T and Verizon Communications Inc. VZ to make Google the default search engine on new mobile devices.
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Alphabet reported first-quarter revenue of $90.23 billion, marking a 12% increase from the same period last year and surpassing Wall Street’s estimate of $89.2 billion. Revenue from Google Search came in at $50.7 billion, up from $46.2 billion.
Price Action: In pre-market trading on Thursday, Alphabet Inc.’s Class A shares rose 1.07% to $160.50, while Class C shares climbed 1.12% to $162.70. Apple shares dropped by 1.32%, reaching $209.70, during the same time, according to Benzinga Pro data.
The company holds a growth score of 66.19% based on Benzinga Edge Stock Rankings. Click here to see how it stacks up against companies like Apple and others in the sector.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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