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Apple and Google are considering AI deal that would build on search pact. Image Credit: Bloomberg

Apple also recently held discussions with the Microsoft -backed OpenAI and has considered using its model, the report added.

Apple is in talks to build Google's Gemini artificial intelligence (AI) engine into the iPhone, Bloomberg News reported on Monday, citing people familiar with the situation.

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Apple is preparing new capabilities as part of its upcoming iPhone iOS 18 based on its own homegrown AI models, but it is seeking a partner to power generative AI features, including functions for creating images and writing essays based on simple prompts, the report said.

Apple and Google are in active negotiations to let the iPhone maker license Gemini to power some new features coming to the phone's software this year, Bloomberg said.

The two parties have not decided the terms or branding of an AI agreement or finalised how it would be implemented, Bloomberg said, adding it was unlikely that any deal would be announced until June, when Apple plans to hold its annual Worldwide Developers Conference.

Apple, Google and OpenAI did not immediately respond to a Reuters request for comment outside business hours.

Both companies have an existing deal for Google to be the default search engine on Apple's Safari web browser.

Apple has been slower in rolling out generative AI, which can generate human-like responses to written prompts, than rivals Microsoft and Google, which are weaving them into products.

Last month, Apple CEO Tim Cook said the company plans to disclose later this year more about its plans to put generative AI to use, adding that the company is investing "significantly" in the area.