Apple Looks to Tencent, ByteDance for AI Model Integration in China

Image Credit: Reuters

Apple is reportedly in early discussions with Tencent and ByteDance, the parent company of TikTok, to integrate their artificial intelligence (AI) models into iPhones sold in China, according to three sources familiar with the matter.

This move follows Apple's introduction of OpenAI's ChatGPT into its devices earlier this month as part of its Apple Intelligence product. The integration allows the Siri voice assistant to leverage ChatGPT for tasks like answering user queries about photos and documents.

However, ChatGPT is unavailable in China due to regulatory requirements mandating government approval for generative AI services, prompting Apple to explore partnerships with local companies amidst a decline in its market share in the country.

The talks with Tencent and ByteDance are at an initial stage, said the sources, who requested anonymity due to the confidential nature of the discussions. ByteDance declined to comment, while Apple and Tencent did not immediately respond to inquiries.

Securing a Chinese partner for AI integration could position Apple competitively in China's rapidly growing AI sector, where numerous large language models, such as ByteDance’s Doubao, Tencent’s Hunyuan, and Baidu’s Ernie, are being developed by tech giants and startups alike.

Apple has also reportedly engaged with Baidu regarding the use of its AI model, but these discussions have encountered challenges, including disagreements over utilizing iPhone user data to train AI models. Baidu has not commented on the matter.

The lack of AI features in the latest iPhones sold in China has hindered Apple's competitiveness in the world’s largest smartphone market, where it faces stiff competition from domestic brands like Huawei. Huawei’s resurgence in the premium segment with its Mate 70 series, equipped with AI capabilities powered by its proprietary language model, has further intensified the competition.

Apple briefly dropped out of China’s top five smartphone vendors in the second quarter of this year before regaining some ground in the third quarter. However, its smartphone sales in China fell 0.3% year-over-year during the third quarter, while Huawei saw a remarkable 42% increase in sales during the same period, according to IDC data.

 

 

 

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.