Apple to Use Baidu AI for New iPhones in China

Apple Inc. reportedly tapped China's Baidu technology company for an artificial intelligence partnership. Through the cooperation, the Cupertino, California-based tech firm plans to use the latter's generative AI technology in the production of its upcoming iPhone 16 models.

Apple and Baidu's Collaboration

Apple will install the Baidu AI chatbot on its latest iPhone 16 and other devices sold in China. GSM Arena reported that media outlets in China revealed that Baidu and Apple agreed to a deal in which the Chinese company will provide its AI services to the new iPhones, which will feature the iOS 18 operating system and are expected to be released this fall.

The company's partnership comes after Apple's chief executive officer, Tim Cook, visited Shanghai last week amid a slowdown in iPhone sales in the country. During his visit, the CEO also spearheaded opening a new Apple store in the region. Cook also met with primary local suppliers to revitalize his commitment to the territory as the company's leading market and manufacturing base.

Baidu's AI on Apple Devices

As per the South China Morning Post, it was agreed that Apple will install Baidu's Ernie Bot generative AI for its iPhone 16 and Mac OS devices. However, it was pointed out that Apple will use its own AI GenAI tool outside of China. The company decided to install Baidu's AI based on compliance considerations.

On the news of Apple and Baidu's partnership, the latter's share price soared in Hong Kong by as much as six percent on Monday, closing at HK$100.7 for the day, indicating an increase of 2.55%. Meanwhile, the companies cannot comment on their reported agreement.

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