Alphabet up 5.5% in premarket trade after report Apple is in talks to license Gemini for iPhones

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This illustration picture taken on April 20, 2018 in Paris shows apps for Google, Amazon, Facebook, Apple (GAFA) and the reflexion of a binary code displayed on a tablet screen. (Photo by Lionel BONAVENTURE / AFP) (Photo credit should read LIONEL BONAVENTURE/AFP via Getty Images)
Lionel Bonaventure | Afp | Getty Images

Apple is reportedly in talks with Google to let the iPhone maker license and build its Gemini artificial intelligence engine into the iPhone, according to a Bloomberg report.

Gemini is Google’s suite of generative AI tools, which ranges from chatbots to coding assistants.

Bloomberg, citing people familiar with the matter, said that the two tech giants are “in active negotiations” for Gemini to power certain new features due to be released to the iPhone software later in the year.

Apple could launch the iOS 18 — its latest operating system for the iPhone — at its Worldwide Developer’s Conference in June.

Apple also recently held discussions with OpenAI and has considered using its model, according to the people cited by Bloomberg.

However, the report said “the two parties haven’t decided the terms or branding of an AI agreement or finalized how it would be implemented.”

Apple and Google did not immediately respond to CNBC’s request for comment.

Read the full report from Bloomberg.

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