Investors found themselves on cloud nine this morning as they observed Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) stock skyrocket following reports of potential discussions with Apple (NASDAQ: AAPL) to integrate its Gemini AI chatbot onto the iPhone.
The buzz around a prospective partnership led to a significant uptick in Alphabet shares, with the stock seeing a remarkable 7.8% surge, nearing an all-time pinnacle. Apple, in the spirit of the occasion, also enjoyed a boost with its shares rising up to 3%.
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An Evaluation of this Potential Game-Changing Move
Today’s momentous leap in Alphabet’s value, surpassing $100 billion in market capitalization, is indeed an eye-catching feat. However, it is crucial to acknowledge that the news remains unconfirmed thus far.
According to Bloomberg’s morning report, Apple is purportedly in talks to license Gemini for upcoming enhancements to iPhone software later in the year, with a likely announcement venue being Apple’s annual developer conference in June.
Prior to these discussions, Apple has also explored collaboration with OpenAI regarding the utilization of its generative AI model, engendering uncertainty surrounding the fruition of an agreement between Apple and Alphabet.
Despite the apprehension stemming from the unconfirmed partnership, the reported collaboration between Apple and Alphabet, if realized, would stand as a significant stride forward for the progenitor of Google. Alphabet has grappled with setbacks in its AI strategy, notably with Bard’s underwhelming debut and the subsequent criticism faced by the revamped Gemini chatbot.
Notably, Alphabet has already sealed a deal with Samsung to incorporate its generative AI technology into the latest Galaxy phones, underscoring the rising adoption of chatbot technology.
While the new AI technology may not presently serve as a primary revenue driver for Alphabet, establishing enduring relationships that could span decades holds paramount significance. Vigilance is advised to track further updates on the impending collaboration between these two tech behemoths, bearing the potential to jolt Alphabet’s stock performance in the future.
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Suzanne Frey, an executive at Alphabet, assumes a board position at The Motley Fool. Jeremy Bowman, unaffiliated with any of the mentioned stocks, features as a member of The Motley Fool. The Motley Fool maintains positions in and endorses Alphabet and Apple. The Motley Fool corroborates a disclosure policy.
