Apple in talks with Tencent, Bytedance over AI features in China- Reuters

Investing.com– Apple Inc (NASDAQ:AAPL) is in talks with Chinese internet giants Tencent Holdings Ltd (HK:0700) and Bytedance over incorporating their artificial intelligence models into its devices sold in the country, Reuters reported on Thursday. 

Talks between the companies are in early stages, the Reuters report said. Earlier reports had also shown Apple in talks with Baidu Inc (NASDAQ:BIDU) over using its AI models, although talks had faltered over technical issues. 

Tencent’s flagship AI model is Hunyuan, while ByteDance has Dubao, with both being regarded among the more advanced Chinese AI offerings. 

Apple is racing to find a local partner in China to enable AI features on its devices. AI integration- dubbed Apple Intelligence- was a main selling point for Apple’s latest line of devices, particularly the iPhone 16 line. 

The Cupertino-based tech giant recently rolled out ChatGPT-powered AI features on its iPhone models sold outside China, which include enhancements for the Siri voice assistant and smart photo features. 

But ChatGPT is not available in China due to local government restrictions. U.S. companies are also restricted from sharing advanced AI technology with Chinese companies. 

Any Chinese player to tie up with Apple is likely to benefit greatly from the deal, given the firm’s massive base of iPhones and other devices in the country.

But Apple has been steadily losing market share in China amid fierce competition from local players such as Xiaomi (OTC:XIACF) Corp (HK:1810) and Huawei.

Apple has also largely lagged its competitors, such as Samsung Electronics Co Ltd (KS:005930), in incorporating AI features into its devices.