Apple (AAPL, Financials) is advancing its artificial intelligence strategy in China by partnering with both Baidu and Alibaba (BABA, Financials) for AI-driven features, a move that underscores the company's efforts to navigate regulatory constraints and local competition, The Information said, citing people privy to the matter.
Alibaba Group Chairman Joe Tsai confirmed the partnership at the World Government Summit in Dubai, stating that Apple selected Alibaba after assessing multiple Chinese firms. Meanwhile, Baidu is developing AI-powered search capabilities and enhancements for the Chinese version of Siri, including text and image processing features.
Apple and Alibaba have submitted their AI features for approval to China's cyberspace regulator, as local AI development requires compliance with government regulations. Apple has also been working on integrating Baidu's large language models into iPhones, but early trials have reportedly faced challenges in accurately processing user prompts.
Apple's AI approach in China contrasts with its global AI strategy, where its Apple Intelligence system integrates the company's own AI models with OpenAI's ChatGPT, backed by Microsoft (MSFT, Financials). However, this AI system has yet to launch in China due to regulatory barriers.
The company's dual AI partnerships suggest a strategic hedge against increasing competition from Chinese smartphone makers like Huawei and Vivo, which have been strengthening their AI capabilities.
