Apple Seeks AI Integration with Chinese Giants

Apple is in early talks with Tencent and ByteDance to integrate AI models into iPhones in China. The U.S. firm seeks local partners due to regulatory hurdles and a declining market share. Apple's competition includes Huawei, which recently launched AI-powered phones, boosting its sales.

Apple is in discussions with Tencent and ByteDance to potentially integrate AI models into iPhones sold in China, according to sources. The talks come as Apple's market share in China wanes.

Regulatory barriers have prevented ChatGPT's availability, prompting Apple to seek local partnerships for AI integration. The absence of AI features in Chinese iPhones has placed Apple at a disadvantage as it competes with domestic brands.

Huawei's recent AI-powered phone release has contributed to its 42% sales surge in Q3, contrasting Apple's 0.3% decline. Meanwhile, Apple's negotiations with Baidu face setbacks over technical issues.

(With inputs from agencies.)