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Apple plans to incorporate Baidu's AI for iPhone 16 range in China, Google’s Gemini to fuel devices elsewhere
Apple is expected to either utilize their own AI models or rent them from Google for the forthcoming AI capabilities of the iPhone 16 Pro and the iPhone 16 Pro Max. In China, it seems likely that Apple will opt for Baidu’s AI models for all devices in that area.
As per a publication by China Star Market, a Chinese news source, Apple has chosen Baidu, a leading Chinese search engine, to supply generative AI technology for its soon-to-be-released iPhone 16 and other devices set to launch in China this year.
The study indicates that Apple plans to integrate Baidu's Ernie Bot into its iPhone 16, Mac OS, and iOS 18, specifically targeting mainland China. This decision comes after dialogue with several Chinese corporations, including Alibaba Group Holding and an AI firm associated with Tsinghua University.
Apple will persist in utilizing its proprietary AI model beyond China, but has chosen to adopt domestic technology within the country to meet regulatory requirements. There are also whispers that Apple could potentially ask Google to integrate their Gemini AI bot into Baidu's shares, which saw an increase of as much as 6% in Hong Kong after the announcement, ending the day at 100 Hong Kong dollars.
The Wall Street Journal reported last Friday about preliminary discussions between Apple and Baidu, indicating a possible partnership between the two technology powerhouses. The integration of Baidu's AI technology into Apple's products in China aligns with Apple CEO Tim Cook's latest trip to China. During this visit, he reiterated Apple's dedication to the Chinese market and interacted with major Chinese suppliers.
At a notable conference organized by the Chinese authorities, Cook praised the substantial role Chinese suppliers play in helping Apple meet its carbon neutral targets. In addition, Cook revealed Apple's intention to introduce its Vision Pro mixed-reality headset to the domestic Chinese market later this year, highlighting the company's emphasis on this particular market.
Apple is experiencing heightened rivalry in China, as iPhone sales dropped 24% annually in the initial six weeks of 2024, based on data from Counterpoint Research. The rise in competition from local competitors like Huawei, Oppo, Vivo, and Xiaomi has played a role in the decrease in iPhone sales.
Apple and Baidu may be on the verge of a collaboration, happening concurrently with Baidu's partnership with Samsung Electronics to incorporate its Ernie large language model into Samsung's newest 5G gadgets. However, AI service companies in China are facing increased regulatory examination. Authorities have set new rules to maintain compliance with approved content standards for AI-created content. In August of last year, China put in place comprehensive regulations for local generative AI services, making the country a leader in governing this burgeoning technology.
(Incorporating information from various sources)
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