Apple is reportedly in talks with Nuance Communications over the use of its voice recognition services in iOS 5. Citing multiple anonymous sources, TechCrunch reports that Apple has been in talks with Nuance for months, possibly over an acquisition, but more likely over a far-reaching licensing agreement and or partnership. As noted in the report, Siri, the voice-based personal assistance and search service acquired by Apple in April 2010, relies on Nuance technology for its services; Siri technology is said to play a large role in iOS 5, and the report claims that Apple has yet to successfully renegotiate the original deal between Siri and Nuance. The report cites Nuance’s $6 billion market cap as a major obstacle in any acquisition talks, as much of this value comes from the company’s various licensing deals, many of which could potentially dry up should Apple take control of the company. Nuance also develops a number of iOS apps, which it sells under its Dragon brand.
Update: According to a second report from TechCrunch, Apple has reached a deal with Nuance that will allow it to run and build upon Nuance’s software at its new data center in North Carolina. The deal will enable Apple to process voice information for iOS users more quickly, and prevent such data from going through third-party servers.