Apple, Google and Microsoft Show AI Remains Big Tech's Game

The AI game keeps getting bigger.  Due to high costs of playing, it is played mainly by Big Tech players. On Monday, Bloomberg published that Apple Inc AAPL is reportedly in talks with Google to use Gemini to power generative AI features to the next iPhone. In an unexpected announcement on Tuesday, Microsoft Corporation MSFT revealed it got an AI pioneer and co-founder of DeepMind, Mustafa Suleyman, to lead its consumer-oriented Copilot business.

Microsoft deepens its AI focus.

Currently in the second year of its AI shift, Microsoft continues to speed up its efforts. Suleyman and Karén Simonyan, a renowned AI research, are coming on board to run a new segment, Microsoft AI, designed to advance the tech titans’ AI efforts. Moreover, Microsoft also hired Suleyman’s colleagues from Inflection.ai, a high-profile AI startup worthy of challenging Microsoft and Open AI, co-founded by Simonyan and Suleyman. Over the past year, Microsoft CEO Satya Nadella revamped the company’s offerings by infusing them with OpenAI’s artificial intelligence technology and by the looks of it, it is ready to advance and go deeper.

Apple and Google discussing to bring generative AI to iPhones

Extending on their partnership through which they brought maps to iPhones, Bloomberg reported that Apple and Google are reportedly discussing to integrate the search giant’s generative AI model in the next iPhone. Apple CEO Tim Cook promised generative AI capabilities are coming this year and this seems like a logical move as its smartphone rivals, Samsung and Google, already added Gemini to their newest devices to offer video editing and audio recordings summaries. Moreover, Google was a big contributor to iPhone’s success, providing Google Maps and becoming the default search engine on the iPhone’s Safari browser for which it is getting more than $18 billion per year from Apple. It makes sense for Google to be the one to help Apple fill the gap in its products as it has been behind its rivals in the AI race. Microsoft, who unlike Apple, invested heavily in AI development, even dethroned Apple after its decade long run of being the world’s most valuable publicly listed company. But, Apple still has massive potential for becoming a big player in the AI race with more than two billion devices actively in use, which is appealing to Google and others. If realized, the blockbuster agreement will undoubtedly reshape the power in the generative AI landscape. 

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