The chief executive of Alphabet, the parent company of Google, declined to answer a direct question about the company’s artificial intelligence partnership with Apple during a quarterly Earnings Call. The incident occurred on Tuesday, April 23, during the question-and-answer session following the presentation of Alphabet’s first-quarter financial results for 2024.
An analyst from a major financial institution explicitly asked CEO Sundar Pichai to provide an update on the status and potential financial implications of the widely reported AI licensing agreement between Google and Apple. Pichai did not address the substance of the question. Instead, he stated that he had nothing specific to announce at that time regarding the partnership.
Context of the Reported Agreement
Reports from multiple news outlets in recent months have indicated that Alphabet and Apple are negotiating a significant deal. This agreement would involve licensing Google’s Gemini AI engine for integration into Apple’s iPhone and other devices. Such a partnership could reshape the competitive landscape of the mobile AI sector, potentially bringing Google’s advanced AI models to hundreds of millions of Apple users.
For Alphabet, a deal with Apple represents a major potential revenue stream and a strategic avenue to distribute its AI technology widely. For Apple, partnering with Google could accelerate its AI capabilities while it continues to develop its own proprietary models internally. The financial terms and specific scope of any such agreement have not been officially disclosed by either company.
Market Reaction and Analyst Commentary
Following the earnings call, market analysts noted the CEO’s avoidance of the topic. Many view the potential Google-Apple AI deal as one of the most significant pending developments in the technology industry for 2024. The lack of commentary from Alphabet’s leadership leaves investors and industry observers without official guidance on the timeline or expected impact of the collaboration.
Financial analysts have published estimates suggesting the agreement could be worth billions of dollars annually to Alphabet. The deal is often compared to the long-standing arrangement where Google pays Apple a substantial fee to be the default search engine on Safari, which is a major contributor to Alphabet’s traffic acquisition costs.
Official Stance and Future Communication
Alphabet’s official position, as demonstrated by the CEO’s response, is to not comment on rumors or speculation about unannounced partnerships. The company’s communications during the earnings call focused on its reported financial performance, including revenue from its search and cloud computing divisions, and its advancements in AI products like the Gemini model suite.
Both Alphabet and Apple maintain strict confidentiality around unreleased products and partnership details. Official announcements are typically reserved for jointly coordinated events or formal regulatory filings when necessary.
Moving forward, observers expect further clarity may emerge during Apple’s own upcoming earnings call or at its annual Worldwide Developers Conference in June. Any finalized agreement between the two tech giants would likely be announced through official press releases and could be subject to regulatory scrutiny in multiple jurisdictions.
Source: GeekWire
