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 the past few days, so these developments don’t come as a surprise. In fact, Apple is reportedly talking to Google and OpenAI for their respective AI models to be integrated with iPhones but China is a crucial market for the company. And since, Google is not available in the region, Apple will need local AI partnership to get a similar deal for AI features on iPhones in China.
Apple is also planning some big AI moves with iOS 18 which will be announced at the WWDC 2024 keynote in the next few months. China has been a core part of Apple’s production plans over the years, and a big iPhone market. The company has realised the need to reduce its dependence on the region after multiple Covid-induced lockdowns.
Apple has already started planning for the future, with India and Vietnam benefiting from its decision to move out of China. Having said that, Cook going to the region, even if it is just to launch a new store and talk to the team in China, shows Apple still values the market and will do so for years to come.
(With Reuters inputs)
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