Apple in Talks to Let Google's Gemini Power iPhone AI Features

FILED - 16 September 2023, US, New York: The Apple logo, taken in Manhattan. Photo: Michael Kappeler/dpa
FILED - 16 September 2023, US, New York: The Apple logo, taken in Manhattan. Photo: Michael Kappeler/dpa
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Apple in Talks to Let Google's Gemini Power iPhone AI Features

FILED - 16 September 2023, US, New York: The Apple logo, taken in Manhattan. Photo: Michael Kappeler/dpa
FILED - 16 September 2023, US, New York: The Apple logo, taken in Manhattan. Photo: Michael Kappeler/dpa

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.
Apple also recently held discussions with the Microsoft -backed OpenAI and has considered using its model, the report added.
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.
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.
The two parties have not decided the terms or branding of an AI agreement or finalized 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.
Both companies have an existing deal for Google to be the default search engine on Apple's Safari web browser, Reuters reported.
Apple, Google and OpenAI did not immediately respond to a Reuters request for comment outside business hours.
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.



Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
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Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)

Dell Technologies raised its annual revenue and profit forecasts on Thursday, buoyed by demand for its AI-optimized servers that are powered by Nvidia's powerful chips, sending its shares up about 3% in extended trading.

Dell's infrastructure solutions group, which includes Nvidia-powered servers, surged 38% to a record revenue of $11.65 billion in the second quarter.

The company's servers are engineered to handle AI systems' intense computational demands, including training large language models.

"Enterprise remains a significant opportunity for us, as many are still in the early stages of AI adoption," Chief Operating Officer Jeff Clarke said in a post-earnings call.

Clarke said that Dell sees an emerging opportunity in "sovereign AI" by leveraging the company's strong relationships with governments globally.

Nvidia on Wednesday said nations building AI models in their own languages were turning to its chips, and that this would contribute about low double-digit billions to its revenue in the financial year ending in January 2025.

Nvidia CEO Jensen Huang called out the partnership with Dell earlier this year, saying they were helping businesses create their own "AI factories."

Dell's stock has risen 45% this year.

Dell said on Thursday it now expects annual revenue outlook to be between $95.5 billion and $98.5 billion, up from $93.5 billion and $97.5 billion previously. It also raised its annual adjusted profit per share forecast to $7.80, plus or minus 25 cents.

Demand for its AI-optimized servers rose about 23% sequentially to $3.2 billion in the second quarter. The backlog for these AI servers was $3.8 billion.

"Our pipeline has grown to several multiples of our backlog," Clarke said in a statement.

Revenue for the second quarter ended Aug. 2 rose about 9% to $25.03 billion, beating analysts' average estimate of $24.14 billion, according to LSEG data. It reported adjusted profit per share of $1.89 per share, compared with estimates of $1.71 per share.

While AI server demand soared, Dell's PC business struggled, losing market share to rivals. However, a strong refresh cycle for

AI PCs are expected next year after Microsoft ends support for Windows 10.

Revenue for the client solutions group - home to PCs - fell about 4% to $12.41 billion.

"Dell lost PC shipment shares in key markets in the second quarter. It is the top vendor in the US business market, but its competitors have shown growth and gained more shares than they did a year ago," said Mikako Kitagawa, director analyst at Gartner.

The company took a $328 million charge for workforce reductions in the second quarter.

Separately, Reuters exclusively reported earlier on Thursday that Dell is again exploring a possible sale of cybersecurity firm SecureWorks, following previous unsuccessful attempts to find a buyer.