Google aims to finalize a deal with Apple by mid-year to integrate its Gemini AI technology into upcoming iPhones, CEO Sundar Pichai stated during testimony at an antitrust trial in Washington on Wednesday. Pichai appeared in defense of Alphabet against U.S. Department of Justice proposals that could end Google's lucrative default search agreements with major partners like Apple, Samsung, AT&T, and Verizon.

When questioned by DOJ lawyer Veronica Onyema, Pichai confirmed that no formal agreement exists yet with Apple to incorporate Gemini AI, but he had previously discussed the possibility with Apple CEO Tim Cook. If a deal is struck this year, Gemini AI could be integrated into "Apple Intelligence," Apple's proprietary AI suite, according to Pichai. He also mentioned Google's plans to explore incorporating ads into the Gemini app.

The DOJ is attempting to show how Google’s stronghold in online search could extend into the AI space. Last year, Judge Amit Mehta ruled that Google preserved its monopoly by paying billions to device makers and carriers to be the default search engine. The judge is now considering measures to rein in Google’s dominance. Potential remedies include forcing the company to sell its Chrome browser, banning default search deals, and requiring Google to share search data with competitors.

Pichai warned that such data-sharing mandates would undermine Google's innovation, calling them "extraordinary" and equivalent to giving away its proprietary search technology. He argued that it would be easy for rivals to replicate Google Search using that data, making it unsustainable for the company to continue investing in R&D as it has for the past 20 years. Google has announced plans to appeal once a final ruling is issued.