Apple has reached an agreement with Chinese search engine giant Baidu to integrate generative artificial intelligence technology into its upcoming iPhone 16 and other products specifically for the mainland Chinese market.
According to reports, Apple will be utilizing Baidu’s Ernie Bot for iPhone 16, Mac OS, and iOS 18 in China, instead of using its own AI model. This decision comes after Apple reportedly held discussions with other Chinese companies, including Alibaba Group Holding and an AI company affiliated with Tsinghua University.
The move is seen as a strategic decision based on compliance considerations, with Apple opting to use locally-built technology in the mainland market while continuing to use its own AI model outside of China. Baidu’s share price in Hong Kong experienced a significant surge following the news, closing at HK$100.7 for the day, up 2.55%.
Both Baidu and Apple have refrained from commenting on the reports, with Baidu declining to provide a statement and Apple yet to respond to requests for comment.
The partnership between Apple and Baidu showcases a growing trend of international tech companies collaborating with Chinese counterparts to navigate the complexities of the Chinese market. As Apple prepares to launch its highly-anticipated iPhone 16 in China, the integration of Baidu’s AI technology is expected to enhance user experience and cater to the unique needs of Chinese consumers.