Google stock slips on Apple-ChatGPT rumors; OpenAI to reveal updates

Shares in Google owner Alphabet (NASDAQ:) slipped in Monday premarket on reports that Apple (NASDAQ:) is nearing a deal to integrate OpenAI’s technology into the iPhone, aiming to equip its devices with artificial intelligence features.

According to Bloomberg News, the company is in the final stages of negotiating an agreement to incorporate ChatGPT functionalities into iOS 18, Apple’s upcoming iPhone operating system.

Previously, Apple has also been reported to have engaged in talks with Alphabet Inc.’s Google to license its Gemini chatbot, though these discussions have not yet resulted in a deal.

The potential partnership with OpenAI could allow Apple to include a widely used chatbot in a series of new AI capabilities it plans to unveil next month. Bloomberg previously reported that talks with OpenAI had intensified in April, although it remains uncertain if the deal will be confirmed soon.

Apple is expected to make significant AI-related announcements in June during its annual Worldwide Developers Conference. The iPhone maker intends to operate some of its new AI features through data centers powered by its own processors, as per reports.

Meanwhile, OpenAI, the creator of ChatGPT, is set to announce updates to its leading chatbot and its most advanced AI model, GPT-4, on Monday. “Feels like magic,” CEO Sam Altman remarked on X on Friday.

The company has scheduled a livestream conference for May 13 at 10 am PT to “demo some updates to ChatGPT and GPT-4.”

Reuters reported last week that Microsoft-backed OpenAI planned to reveal an AI-driven search product one day before Google’s I/O developers conference. However, a source familiar with the situation reportedly indicated that the launch of the search product had been postponed, Reuters says.

On Friday, CEO Sam Altman stated on X that the upcoming announcement would be “not gpt-5, not a search engine, but we’ve been hard at work on some new stuff we think people will love! feels like magic to me.”