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Have you seen in the NBA 🏀 when great players all come together to stack a team, which in turn makes the league not that fun to watch? Think like this but in terms of software. Google and Apple are potentially coming together for Apple’s newest iOS release. And it’s not the first time they’ve done it. Here’s everything you need to know.

JOKE OF THE DAY
Hahaha

A young man gets up to give a speech:

"Greetings, fellow humans! Today, we delve into the world of AI, where machines aim to mimic human intelligence. Although I must admit, I've never seen a robot that understands the complexities of Florida weather."

PREVIOUS PARTNERSHIP
Did you know this?

It was reported on Monday that Google and Apple were teaming up for Apple’s iOS 18 release in September. With Apple recognizing its need to catch up in AI, Google’s Deepmind team has much to offer the Silicon Valley Giant. 

But before we all freak out, assuming this is the first time the two behemoths have teamed up for world domination, we can’t say it is true.

While Apple has been working on Safari and its search capability since 2003, for the longest time, the default browser on the iPhone was Google. And it wasn’t voluntarily. Google was paying Apple fees yearly, but in 2021, it got as high as $18B reported here. I scratch your back, you scratch mine.

You can always change your iPhone's default browser in settings by clicking Safari to Bing, DuckDuckGo, Yahoo, or Ecosia, but Google remains the initial search selection.

From an AI viewpoint, how soon will they add Perplexity or Arc? 🤔 

CURRENT POSITION
Important For Apple

We mentioned multiple times in this newsletter that we felt like Apple was falling behind in the Generative AI race for human consumption and output. They already have a leg up on the entire field by being 1 of 2 companies over 90% of US phone owners trust to be their selected phone purchase. While Android still has over 70% of the market share worldwide, Apple doesn’t offer a cheap product.

So, it’s important to recognize that Apple isn’t going anywhere anytime soon by holding the US population in its hands.

And no other country is controlling culture more than we are in the States. So, if we like a platform or technology being created, the world typically follows.

POTENTIAL DEAL
All the Details

Apple wants to license Google’s Gemini Model for new iOS 18 system capabilities.

The article notes that while Apple will try out some of its own models for iPhone Users, it’s looking for help in the generative AI space for users who need help with their writing or even generating images.

Unfortunately, Apple will not reveal specifics about iOS 18's release until the WWDC (worldwide developer conference), which is typically held in June.

But with what we can infer and from recent pushes from other companies like OpenAI, Anthropic, and even Google, there better be some Generative AI on this release.

ADDITIONAL THOUGHTS
My Thoughts

A couple of things to note.

1) Could we see a mid-year update next year because of improvements with AI with as much hype as we move from iOS 17 to iOS 18? We don’t realize how important generative AI and its computing power will be to humans daily.

2) Will this cut down iPhone’s market share? In the short term, I don’t see this affecting the iPhone. But if Apple can’t catch up in the generative AI space over the next two years, and will continue to have to rely on Google and others for potential partnerships, what will that say about Apple’s AI Division? We covered it yesterday that they just purchased DarwinAI. How much pressure will this put on the DarwinAI team to save Apple’s AI dreams?

3) Will this prop the door open for new competitors? I think the direction of phones is moving towards available but also offensive. This means that the phone doesn’t want to wait for you to need something to use it. It wants to be in use before you need something, which is the entire point of artificial intelligence from a human perspective. Could we see companies like OpenAI, Anthropic, or even X hop in the hardware space?

CONCLUSION
Wrap it Up

All we know about the new deal brewing between Apple and Google. As we mentioned, the deal is not finished yet, but you will be the first to know when we find out something. We’ve got a lot of news to cover for our Mid Week Report that drops every Wednesday!

See you then,

Zander

FAMILY PHOTO

🤠 Written by me, Zander. Connect with me on X! (Brand new to X? So am I!)

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