Shares of Alphabet saw a significant increase of over 4% on Monday, driven by news of potential licensing discussions between tech giant Apple and Gemini for future iPhones. Apple shares finished the day with a slight increase of less than 1%.

Gemini is a comprehensive set of artificial intelligence tools developed by Google. These tools cover a wide range of applications, including chatbots and coding assistants.

As per a report from Bloomberg, Apple is currently engaged in discussions with Google, which is owned by Alphabet, to potentially license and integrate its Gemini AI engine into the iPhone.

According to insiders, Bloomberg reports that the two tech giants are currently engaged in negotiations for Gemini to provide support for upcoming features in the iPhone software.

The highly anticipated iOS 18 update for the iPhone is set to be unveiled at Apple’s Worldwide Developers Conference. That’s when the company typically discusses its plans for generative artificial intelligence and provides updates on its latest iPhone software, which is usually released to consumers in the fall.

During the company’s annual shareholder meeting in February, Apple CEO Tim Cook expressed the company’s commitment to investing significantly in AI.

“Later this year, I am excited to inform you about the innovative advancements we will make in generative AI, a technology that has the potential to reshape the future,” Cook expressed.

According to sources cited by Bloomberg, the company has recently engaged in discussions with OpenAI and has explored the possibility of utilizing its model.

According to the report, the two parties have not yet reached a decision on the terms, branding, or implementation of an AI agreement.