- Pichai discloses Google’s plans to explore embedding advertisements within the Gemini AI app, highlighting the monetisation strategies underlying AI development.
- Google has indicated its intention to appeal any unfavourable rulings, underscoring the high stakes involved for the company and the broader tech industry.
In a testimony before the US District Court in Washington, Alphabet CEO Sundar Pichai highlighted Google’s ambition to collaborate with Apple by the middle of this year to integrate its cutting-edge Gemini AI technology into new iPhones.
The potential partnership could have far-reaching implications for both the technology industry and the competitive dynamics of internet search and AI services.
Pichai’s testimony occurred amidst efforts by the US Department of Justice (DoJ) to curb Google’s market influence by proposing the termination of lucrative default search engine deals that Google maintains with major smartphone manufacturers and wireless carriers such as Apple, Samsung, AT&T, and Verizon.
These agreements have long contributed to Google’s entrenched monopoly by ensuring that its search engine remains the primary portal for billions of users accessing the internet on mobile devices.
AI innovation
The DoJ’s push for remedies—including the potential forced sale of the Chrome browser, bans on paying for default search status, and mandatory sharing of proprietary search data with competitors—aims to restore competition and prevent Google from leveraging its search dominance into adjacent markets like AI.
During questioning by DoJ attorney Veronica Onyema, Pichai revealed that while no formal agreement with Apple currently exists to embed Gemini AI within Apple’s own AI framework, discussions with Apple CEO Tim Cook had taken place.
Inclusion of Gemini AI within Apple Intelligence—a suite of AI functions native to iPhones—would signal a significant melding of software ecosystems and could accelerate the adoption of advanced AI features across Apple’s hardware.
Generating ad revenue
This collaboration, if finalised, underscores Google’s intent to remain at the forefront of AI innovation and distribution, maintaining a competitive edge even as new platforms emerge.
Pichai also disclosed Google’s plans to explore embedding advertisements within the Gemini AI app, highlighting the monetisation strategies underlying AI development.
This reflects the broader industry trend where AI services are not only tools for enhanced functionality but also platforms for generating ad revenue, reinforcing the economic significance of these technologies.
Opponents of Google’s dominant business model argue that its extensive network of default search engine agreements effectively stifles competition and shields the company from market forces. Judge Amit Mehta, who is presiding over the case, has recognised aspects of Google’s monopoly in past rulings and is now considering measures to increase market openness.
Detrimental effects
The fundamental question remains how to balance regulatory enforcement with encouragement of innovation: ensuring competition without undermining incentives for companies like Google to invest heavily in research and development.
Pichai stressed the detrimental effects of proposed data-sharing mandates that would require Google to disclose its search index and query data to competitors.
Such provisions, he argued, amount to a de facto forced divestiture of Google’s intellectual property, potentially enabling rivals to replicate Google’s search services without undertaking comparable innovation costs.
This, he warned, could render the current model of investment in AI and search untenable and diminish the pace of technological progress.
Looking ahead, Google has indicated its intention to appeal any unfavourable rulings, underscoring the high stakes involved for the company and the broader tech industry.
The trial’s outcome has the potential to fundamentally reshape the internet landscape by altering the competitive structure of digital information access and AI-enabled services.