Apple is reportedly negotiating with China's ByteDance and Tencent to bring their artificial intelligence models to iPhones sold in China, as the company adapts its AI strategy for the Chinese market.
Apple began integrating OpenAI's ChatGPT into its devices globally earlier this month with the release of iOS 18.2, iPadOS 18.2, and macOS Sequoia 15.2, but ChatGPT is not accessible in China due to regulatory restrictions. Chinese law requires government approval before companies can release generative AI services to the public.
Both ByteDance and Tencent have developed their own AI models - Doubao and Hunyuan respectively - which could potentially be integrated into Chinese iPhones if the talks prove successful. However, negotiations are said to be still in early stages, according to sources cited by Reuters. Apple is reported to have previously held talks with Baidu about similar AI integration.
Any partnership could be particularly significant as Apple faces increasing competition in China's smartphone market. The company briefly dropped out of China's top five smartphone vendors in the second quarter of 2023 before recovering in the third quarter, though its sales still declined 0.3% year-over-year.
Meanwhile, Huawei has gained momentum in the Chinese market, with sales surging 42% in the third quarter. The company's recent Mate 70 series features AI capabilities powered by its own home-grown large language model.
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