Google Will Save Apple

By Douglas A. McIntyre Published Sep 9, 9:15AM EDT

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Apple Inc. (NASDAQ: AAPL) is reportedly considering using Google’s AI product, since it has yet to release its own.
Apple and Google each have a reason for such a partnership.

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Apple Inc. (NASDAQ: AAPL | AAPL Price Prediction) is losing its top artificial intelligence (AI) engineers at a frightening rate. Many are going to Meta and OpenAI in exchange for multi-million-dollar pay packages. This is just when Apple needs them. After delaying the release of a new iOS that would include Apple’s flagship AI product, the debut has been moved to the middle of next year. And the product may be underwhelming. Apple’s best option, which may be its only option to have a world-class product, is to use a version of Google’s AI product known as Gemini.

Gemini has been well tested because it is at the heart of billions of Google searches for several months. Many queries bring up Gemini as the first result. Google needs a large distribution partner, however. It has 2.2% of the chatbot market. OpenAI has 80.9%, while Perplexity has 8.1%, and Microsoft CoPilot has 5.2%. Gemini cannot climb the AI market share ladder without broad distribution help.

There are already rumors Apple is looking at the Google alternative. Bloomberg reports that “The underlying technology enabling the new Siri could come in part from Alphabet Inc.’s Google, Apple’s longtime partner in internet search.” So, the company may have already made the decision.

One thing is for sure: Apple is about to release its new iPhone 17. The one certain disappointment about it will be that the AI version of iOS will not ship with it. If people decide to wait for the critical feature, iPhone 17 sales could languish at a time the company cannot afford that to happen.

Apple is so far behind in the AI race that it has affected its share price. Its stock is down 5% this year while the S&P 500 is up 11%. And Apple’s shares are never down, at least in the minds of its diehard investors.

Apple and Google have a reason for a partnership. Each is struggling in the AI market in its own way.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.