Apple is in early discussions with Tencent and ByteDance to incorporate their artificial intelligence (AI) models into iPhones sold in China, Reuters reported, citing sources. This move follows Apple’s recent efforts to enhance Siri with AI, including OpenAI’s ChatGPT, although the latter is unavailable in China due to regulatory restrictions.
Given these limitations, Apple is seeking local AI partners for its devices in China. The discussions with Tencent and ByteDance could significantly impact China’s AI landscape, where companies like ByteDance’s Doubao, Tencent’s Hunyuan, and Baidu’s Ernie are leading the development of large language models.
Apple has also explored using Baidu’s AI models but has faced technical challenges, including disputes over the use of iPhone user data for AI training. The lack of AI features in iPhones has affected Apple’s market share in China, where competition from Huawei has intensified. Huawei’s Mate 70 series, launched in August, includes AI capabilities powered by its proprietary model, putting pressure on Apple, which briefly fell out of China’s top five smartphone vendors in Q2 but regained its position in Q3.
Additionally, reports indicate Apple is working with Broadcom on its first server chip for AI processing, aiming to reduce reliance on NVIDIA’s costly, limited-supply chips.
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