Investing.com -- Alphabet Inc (NASDAQ:GOOGL) CEO Sundar Pichai defended Google’s search business in court Wednesday, warning that proposed government remedies would force the company to give away critical technology. He also revealed that Google is in talks with Apple (NASDAQ:AAPL) to bring its Gemini AI to iPhones “later this year," according to a report by Bloomberg.

Testifying in a federal antitrust proceeding, Pichai said the Justice Department’s proposal to open Google’s search and ranking data to rivals would constitute a “de facto divestiture of search.” He told the court, “The proposal on data sharing is so far reaching, so extraordinary… it feels like de facto divestiture.”

The Justice Department is seeking penalties after a judge found that Google illegally maintained a monopoly in online search. Regulators want the company to license search data, end exclusive deals, and potentially separate some of its business units.

Pichai argued the measures would have long-term consequences for U.S. competitiveness in AI and online platforms. “It will have many unintended consequences,” he said, adding that investment in R&D could suffer.

In addition to defending core products, Pichai used his testimony to signal a potential expansion of Google’s AI footprint through a deeper partnership with Apple. He said he held multiple conversations with Apple CEO Tim Cook during 2024 and remains hopeful Gemini could be integrated into iPhones.

“I hope to have a deal done by the middle of this year,” he said, referring to adding Gemini as a built-in option alongside ChatGPT, which Apple already uses in some features.

Gemini is Google’s answer to OpenAI’s ChatGPT models and has become a central focus of the company’s product roadmap. Apple currently uses its own AI systems for most tasks but has partnered with external models for broader capabilities.

The partnership, if finalized, would deepen the longstanding relationship between the two tech giants. Google already powers Safari search and has long provided services like Maps and YouTube on Apple devices.

Pichai’s comments highlight the dual role regulators now play in the AI era: forcing accountability while potentially limiting scale. For Google, the case underscores the risk of regulatory overreach just as it positions Gemini as a next-generation growth engine.

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