Apple in Talks with Tencent and ByteDance for China AI Integration
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Apple is reportedly in discussions with Tencent and ByteDance to incorporate their artificial intelligence models into iPhones sold in China, Reuters reports. The move comes as Apple seeks to bolster its AI capabilities in the world's largest smartphone market, where its market share is facing pressure from domestic competitors.
The U.S. tech giant recently launched OpenAI's ChatGPT on its devices globally, enhancing Siri's functionality. However, ChatGPT's unavailability in China and the country's stringent regulatory requirements for generative AI necessitate partnerships with local providers.
"Apple's discussions with Tencent and ByteDance on using their AI models are at a very early stage," note sources who spoke to Reuters.
A successful partnership would position Apple favorably in China's burgeoning AI landscape, where numerous large language models have been introduced by both established tech firms and startups. These include ByteDance's Doubao, Tencent's Hunyuan, and Baidu's Ernie.
Apple's reported negotiations with Baidu regarding the use of Ernie in China have reportedly faced obstacles related to technical issues and concerns over using iPhone user data for AI model training.
The absence of robust AI features in the latest iPhones sold in China has contributed to Apple's declining market share in the region, where domestic brands like Huawei are gaining ground. Huawei's recent Mate 70 series launch, featuring advanced AI capabilities powered by its proprietary large language model, underscores the growing competition in China's smartphone market.
Apple's smartphone sales in China experienced a slight decline of 0.3% year-on-year in the third quarter, while Huawei's sales surged by 42% during the same period, according to research firm IDC.