Apple seeks China AI boost in talks with Tencent, ByteDance

Apple (NASDAQ:AAPL) is reportedly in preliminary discussions with Chinese tech giants Tencent and ByteDance, the parent company of TikTok, to integrate their artificial intelligence (AI) models into iPhones sold in China.

This move, revealed by three sources familiar with the matter, comes as the U.S. tech giant seeks to navigate regulatory hurdles and bolster its position in a key market.

Earlier this month, Apple began rolling out OpenAI's ChatGPT as part of its Apple Intelligence product, allowing the Siri voice assistant to leverage the chatbot's capabilities for queries involving photos and documents.

However, ChatGPT remains unavailable in China due to strict regulatory requirements mandating government approval for generative AI services before their public release.

These constraints have pushed Apple to seek partnerships with local firms for its AI initiatives.

The talks with Tencent and ByteDance are still in their infancy, according to the sources, who requested anonymity as the negotiations are not public.

While ByteDance declined to comment, Apple and Tencent have yet to respond to inquiries.

A successful collaboration could provide Apple with a significant edge in China’s competitive AI landscape, where numerous large language models have emerged.

Notable entrants include ByteDance's Doubao, Tencent's Hunyuan, and Baidu's (NASDAQ:BIDU) Ernie.

Partnering with Apple for AI services could position Tencent or ByteDance as major players in the rapidly evolving field.

Apple's market share in China has been under pressure, making its AI strategy crucial to maintaining relevance in the world's second-largest economy.