Tech Giant Shells Out Large Sum to Equip Samsung Devices with Gemini AI, Regulators Call for Severe Sanctions
Alphabet Inc., Google's parent company, is reportedly paying Samsung Electronics a substantial sum monthly to preinstall its generative AI app, Gemini, on Samsung devices, according to information disclosed during an antitrust hearing in a Washington federal court.
During the hearing, Google's vice president of platforms and device partnerships, Peter Fitzgerald, confirmed that Samsung has been receiving fixed monthly payments since January, as part of a deal lasting at least two years. This arrangement provides Samsung with a monetary reward for every device shipped with Gemini pre-installed, as per Bloomberg. In addition, Samsung also receives a share of the ad revenue generated within the Gemini app.
Fitzgerald testified that Samsung had also received competitive offers from tech giants like Microsoft, Meta, and OpenAI to feature their AI apps. He admitted that Google considered these proposals when negotiating with Samsung.
The deal between Google and Samsung has attracted the attention of US authorities, with Judge Amit Mehta having previously ruled that Google violated antitrust laws by paying Samsung to make its search engine the default on Samsung phones. The Justice Department has proposed banning Google from offering such compensation to companies for making its search engine or AI products the default on devices.
Although the specific financial details of the deal between Google and Samsung were not disclosed in court, David Dahlquist, a DOJ lawyer, referred to the amount as a "substantial monthly payment."
In a separate case, it was revealed that Google paid Samsung $8 billion from 2020 to 2023 to ensure that Google Search, the Play Store, and Google Assistant were the default options on Samsung devices.
In 2023, a federal jury found that Google had misused its power in the Android app market, leading to a judge imposing restrictions to ease Google's control over rival marketplaces and billing systems.
No additional information relevant to this topic could be found regarding the amount Google pays Samsung for pre-installing their generative AI app, Gemini. For more specific details on such business agreements or financial reports, further research may be necessary.
- The reported deal between Google and Samsung involves Samsung receiving a substantial monthly payment to pre-install Google's generative AI app, Gemini, on Samsung devices, as confirmed during an antitrust hearing.
- Google's vice president of platforms and device partnerships, Peter Fitzgerald, testified that Samsung had also received competitive offers from tech companies like Microsoft, Meta, and OpenAI, indicating that the financial arrangement between Google and Samsung is not unique in the industry.
- The deal between Google and Samsung has brought scrutiny from US authorities, with the Justice Department proposing a ban on Google from offering such compensation to companies for making its search engine or AI products the default on devices, given the potential for antitrust violations in the finance, technology, politics, and general-news sectors.
