Apple Explores AI Integration with Tencent and ByteDance for Chinese Market
Apple is reportedly in discussions with tech giants Tencent and ByteDance to incorporate their artificial intelligence models into iPhones sold in the country. The move comes as Apple recently introduced OpenAI's ChatGPT into its devices, allowing Siri to leverage the chatbot's capabilities for user queries related to photos and documents.
Due to regulatory requirements in China, generative AI services like ChatGPT must secure government approval before being publicly available. This has prompted Apple to engage with local partners to navigate the market's unique landscape.
Sources familiar with the matter revealed that talks between Apple and Tencent, as well as ByteDance, are still in the early stages. Both ByteDance and Apple declined to comment, while Tencent has yet to respond to requests for statements.
The potential collaboration with a Chinese partner for AI services could be a significant advantage in a competitive AI market, where various tech companies have launched their own language models. Notable examples include ByteDance's Doubao, Tencent's Hunyuan, and Baidu's Ernie.
Despite previous discussions with Baidu regarding AI model integration in China, technical challenges, such as disagreements over the use of iPhone user data for training AI models, have reportedly hindered progress. Baidu's shares experienced a decline following these reports, while Tencent's shares saw a rise.
The absence of AI features in the latest iPhones sold in China has posed challenges for Apple, particularly as it faces tough competition from domestic brands like Huawei. Huawei's recent launch of the Mate 70 series, equipped with AI capabilities powered by its proprietary language model, underscores the growing importance of AI in the Chinese market.
After briefly dropping out of the top five smartphone vendors in China, Apple managed to regain its position in the third quarter. However, the company experienced a slight decline in smartphone sales compared to Huawei, whose sales surged by 42% during the same period, according to IDC.
Apple in talks with Tencent and ByteDance for AI integration in China
Regulatory requirements in China prompt Apple to seek local partners for AI features
Discussions with Tencent and ByteDance at early stages, no official comments yet
Source: REUTERS