Report: Apple may utilize Baidu to enhance AI capabilities on iPhones in China
Apple has held preliminary talks with Baidu <9888.HK> about using the Chinese company’s generative artificial intelligence technology in its devices in China, the Wall Street Journal reported on Friday.
Apple and Baidu did not immediately respond to Reuters requests for comment.
Tim Cook has been spotted in China in recent days, so this development doesn’t come as a surprise. In fact, Apple is said to be talking to Google and OpenAI about integrating their respective AI models into the iPhone, but China is a crucial market for the company. And since Google isn’t available in the region, Apple needs a local AI partnership to get a similar deal for the iPhone’s AI capabilities in China.
Apple is also planning big AI changes with iOS 18, which will be announced at WWDC 2024 in the coming months. China has been a key part of Apple’s production plans for years and a large iPhone market. The company has realized the need to reduce its reliance on the region after several Covid-related closures.
Apple has already started planning for the future, with India and Vietnam benefiting from its decision to move out of China. Cook going to the region, even if it’s just to open a new store and talk to the China team, shows that Apple still values the market and plans to do so for years to come.
(Credit to Reuters)
