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Apple will utilize Baidu's AI for iPhone 16 series in China, while Google’s Gemini will drive devices in other areas
Apple is expected to either use their own AI systems or rent them from Google for the prospective AI capabilities of the iPhone 16 Pro and the iPhone 16 Pro Max. In China, it's reported that Apple will most likely opt for Baidu’s AI systems for all the devices in that region.
China Star Market, a Chinese news source, reports that Apple has chosen Baidu, a leading Chinese search engine, to supply generative AI technology for the forthcoming iPhone 16 and other devices 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 the mainland China market. This comes after engaging in talks with several Chinese firms, inclusive of Alibaba Group Holding and an AI business associated with Tsinghua University.
Apple plans to stick with its in-house AI system globally, but is choosing to use locally-developed technology in China due to regulatory requirements. Speculation also indicates that Apple might involve Google in integrating their Gemini AI bot into Baidu's stocks, which rose as much as 6% in the Hong Kong market following this news, ending the day at 100 Hong Kong dollars.
The recent advancements come after the Wall Street Journal reported preliminary discussions between Apple and Baidu last Friday, indicating a possible partnership between the two technology powerhouses. The move to integrate Baidu's AI technology into Apple's products in China aligns with Apple CEO Tim Cook's latest trip to China. During this trip, Cook re-established Apple's dedication to the Chinese market and interacted with prominent Chinese suppliers.
At a prominent conference facilitated by the Chinese authorities, Cook praised the substantial contributions made by Chinese vendors in helping Apple achieve its carbon-neutral objectives. Furthermore, Cook unveiled Apple's intention to introduce its Vision Pro mixed-reality headset in the domestic market later this year, emphasizing the company's keen interest in the Chinese market.
Apple is experiencing heightened competition in China, leading to a 24% drop in iPhone sales compared to the previous year in the initial six weeks of 2024, as reported by Counterpoint Research. This decrease in iPhone sales is due in part to the growing competition from local competitors like Huawei, Oppo, Vivo, and Xiaomi.
Apple and Baidu may soon join forces, a development that follows Baidu's recent team-up with Samsung Electronics to incorporate its Ernie large language model into Samsung's newest 5G devices. However, AI service providers in China are facing increased regulatory oversight, as authorities release new rules to guarantee adherence to accepted content norms for AI-derived material. In August of last year, China established precise rules for homegrown generative AI services, marking the country as a frontrunner in overseeing this burgeoning technology.
(Incorporating information from various sources)
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