TechCrunch reports that Apple is rumored to be negotiating some sort of deal with Nuance Communications, the speech recognition company behind the Dragon NaturallySpeaking engine that powers a number of popular applications for Mac OS X, iOS, and other platforms. The report notes that Nuance's technology is already used to drive personal assistant software from Siri, a company purchased by Apple last year. Apple has also been said to be preparing to bring a substantial integration of Siri's artificial intelligence and voice control capabilities into iOS 5 presumably set for release later this year. According to the new report, it is unlikely that Apple is seeking a direct acquisition of Nuance, given the company's $6 billion market capitalization and reports that the company is known for driving a hard bargain, including in negotiations with Apple to keep Siri's services alive after the acquisition, negotiations that have reportedly yet to lead to an agreement. While an acquisition is still a possibility, a more likely scenario seems to be an expansive licensing deal that would provide Apple with the technology it needs at a substantially lower cost than an acquisition while also giving Apple time to build out its own in-house expertise to potentially replace Nuance at some point down the road. Article Link: Apple Negotiating Deal With Nuance for Speech Recognition in iOS 5?