Apple may use Google’s Gemini AI to power iPhone features

Good morning. Here's what happened overnight and what you need to know today.

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1.

Tech teamwork: Apple is in discussions to build Google’s Gemini artificial intelligence engine into its iPhones, according to sources cited by Bloomberg. The deal would allow Apple to licence Gemini to power certain features due to be introduced to iPhone software later this year. According to Bloomberg’s sources, Apple recently held discussions with OpenAI around using its model for similar purposes. Google and Apple have partnered for several years, with Google paying billions annually to ensure that Chrome remains the default search option in the Safari web browser on Apple devices. The deal may signal that Apple remains behind in its AI efforts, as it opts to seek a partnership to gain access to more powerful AI tools. Google parent company Alphabet’s shares were up almost 7% during early trading on Monday, setting it on track to be the stock’s largest intraday gain since early December. (Bloomberg)

2.

Consulting revamp: Deloitte has launched the largest restructure of its global operations in ten years as it seeks to cut costs amid a market slowdown, according to an internal email to firm partners seen by the Financial Times. CEO Joe Ucuzoglu is leading the project which will take place over the space of 12 months, and will be implemented across the over 150 countries in which Deloitte currently operates. A core part of the restructure will see Deloitte’s key five business units reduced to four, which will include: audit and assurance; strategy, risk and transactions; technology and transformation; and tax and legal. Ucuzolgu explained that the plan aims to reduce complexity, freeing up more partners to work with clients rather than manage staff internally. The sector is anticipating a challenging year ahead as an uncertain economic context continues to stifle company spending. (Financial Times)

3.

Request denied: Donald Trump has been unable to raise the USD450 million ($686.50 million) bond needed to postpone the enforcement of a fraud judgment against him in a New York civil court. Trump’s lawyers have said that despite his team spending “countless hours” negotiating potential options, very few companies are considering extending a bond that comes close to the magnitude of the amount required. His legal team reportedly approached 30 underwriters to back the bond due at the end of this month. Trump has requested that an appeals court delay the enforcement. He must either find the cash or post a bond to prevent authorities from seizing his properties while he appeals a February decision ordering him to pay penalties for misstating property value to dupe lenders and insurers. (Reuters)

4.

Israel-Hamas war: The UN food agency has published research that shows “famine is imminent” in northern Gaza where 70% of the population (approximately 210,000 people) is experiencing catastrophic levels of hunger. Findings from the Integrated Food Security Phase Classification (IPC) report published on Monday say that famine in Gaza's northern areas is projected to occur anytime between mid-March and May 2024. The entire population in the Gaza Strip (around 2.23 million people) is facing high levels of acute food insecurity. From mid-March to mid-July, the IPC says the most likely scenario (under the assumption of an escalation of the conflict including a ground offensive in Rafah), is that half of the population of the Gaza Strip will be pushed into catastrophic conditions, the most severe level in the IPC Acute Food Insecurity scale. (World Food Programme press release)(World Food Programme research)

5.

EV downturn: Electric vehicle maker Fisker will pause production for six weeks and warned it may seek bankruptcy, after the company missed an interest payment last week. In an SEC filing Fisker explained that the company failed to make a required USD8.4 million interest payment on certain bonds last week, and that it would take advantage of a 30-day grace period to make that payment. The company raised doubt about its ability to proceed as a going concern, and that should it fail to raise sufficient capital it may not be able “to satisfy our debt service obligations and could need to seek protection under applicable bankruptcy laws.” The filing says that Fisker has secured USD150 million in financing through the sale of USD166.7 million worth of notes to an existing investor at a 10% discount. The filing did not disclose the name of the investor. Fisker added that it is continuing talks with a large automaker for a potential investment and joint development partnership. (Fisker SEC filing)(Wall Street Journal)

6.

Neglected developers: Developers are frustrated with the AI giant’s lack of attention given to its GPT Store. Developers told The Information that four months since the store’s launch, they’ve been disappointed by a dearth of customers and support from OpenAI in terms of analytics about their users. The company is also limiting access to the GPT Store to paying ChatGPT customers, and isn’t allowing developers to charge for their apps yet. “People feel like [OpenAI] has abandoned the GPT Store,” Kirill Demochkin told The Information, who sells analytics tools to app developers, including those who built apps for the GPT Store. The company is reportedly in talks to bring political veteran Chris Lehane on board to help with the company’s policy and PR efforts. (The Information)

7.

Savvy appointment: The $1 billion-plus CSIRO-backed Main Sequence has appointed leading venture capitalist, Elaine Stead as a principal on its investment team. As the fund ramps up its search for deep tech startups, Stead will focus on uncovering opportunities for Main Sequence’s investment challenge “Reach Humanity Scale Healthcare.” Main Sequence is renowned for its involvement in the country’s deep tech startups, investing early in technologically complex “moonshot” ideas. Stead previously ran the $200 million venture capital arm of defunct alternative asset manager Blue Sky, and has since stablished two startup investment vehicles, Human VC and Tribe Global Ventures. (Capital Brief)

8.

ESG opponents: CEO of Saudi Aramco, Amin Nasser, has said that the global energy transition is “visibly failing” as its advocates overlook the impacts on consumers of cheap and reliable fuels. Speaking at CERAWeek by S&P Global conference in Houston on Monday, Nasser said that the oil industry has been painted as the transition’s nemesis, and that the peak in worldwide demand for oil is not going arrive for “some time to come,” let alone by the 2030 benchmark. Nasser also reiterated comments made in February, that oil demand is likely to increase during 2024, reaching an all time high in H2 this year. (Bloomberg)