Apple in Talks with Chinese Tech Giants to Integrate AI Features in iPhones for China Market

Apple in talks with Tencent, ByteDance to roll out AI features in China, sources say

BEIJING (Reuters) - Apple is in talks with Tencent and TikTok owner ByteDance about integrating their artificial intelligence models into iPhones sold in China, according to three sources familiar with the matter. The U.S. firm started the rollout of OpenAI's ChatGPT into its devices this month, part of the Apple Intelligence product that allows its Siri voice assistant to tap the chatbot's expertise including on user queries about photos and documents such as presentations. ChatGPT is not available in China and the country's regulatory requirements mandate that generative AI services obtain government approval before public release, forcing Apple to seek local partners for its AI features at a time when its market share in the country is declining. Apple's discussions with Tencent and ByteDance on using their AI models are at a very early stage, said the sources, who declined to be named as the talks are not public. ByteDance declined to comment, while Apple and Tencent did not respond immediately to requests for comment. A successful partner for Apple's AI services in China could be a major winner in the country's increasingly crowded AI field where dozens of large language models have been launched by large tech firms as well as startups. They include ByteDance's Doubao, Tencent's Hunyuan and search engine giant Baidu's Ernie. Apple and Baidu have reportedly been in talks about using the latter's AI model in China, but The Information this month reported the discussions faced setbacks due to technical issues, including disputes over using iPhone user data to train AI models. Baidu did not respond immediately to a request for comment. The absence of AI capabilities in the latest iPhones sold in China has become a major setback for Apple, as it faces declining market share in the world's biggest smartphone market due to growing competition from domestic brands including Huawei. Huawei, which returned to the high-end market in August with a phone using a Chinese-made chip, launched its Mate 70 series last month featuring AI capabilities powered by its proprietary large language model. Apple briefly fell out of China's top five smartphone vendors in the second quarter before recovering in the third quarter. The U.S. company's smartphone sales in China still slipped 0.3% during the third quarter from a year earlier, while Huawei's sales surged 42%, according to research firm IDC. (Reporting by Liam Mo in Beijing and Brenda Goh in Shanghai; Editing by Miyoung Kim and Jamie Freed)

Apple in talks with Tencent, Bytedance over AI features in China- Reuters By Investing.com

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.

Apple in Talks with Tencent, ByteDance for iPhone AI Features in China: Report

Apple and Baidu have reportedly been in talks about using the latter's AI Apple is in talks with Tencent and TikTok owner ByteDance about integrating their artificial intelligence models into iPhones sold in China, according to three sources familiar with the matter. The US firm started the rollout of OpenAI's ChatGPT into its devices this month, part of the Apple Intelligence product that allows its Siri voice assistant to tap the chatbot's expertise including on user queries about photos and documents such as presentations. ChatGPT is not available in China and the country's regulatory requirements mandate that generative AI services obtain government approval before public release, forcing Apple to seek local partners for its AI features at a time when its market share in the country is declining. Apple's discussions with Tencent and ByteDance on using their AI models are at a very early stage, said the sources, who declined to be named as the talks are not public. ByteDance declined to comment, while Apple and Tencent did not respond immediately to requests for comment. A successful partner for Apple's AI services in China could be a major winner in the country's increasingly crowded AI field where dozens of large language models have been launched by large tech firms as well as startups. They include ByteDance's Doubao, Tencent's Hunyuan and search engine giant Baidu's Ernie. Apple and Baidu have reportedly been in talks about using the latter's AI model in China, but The Information this month reported the discussions faced setbacks due to technical issues, including disputes over using iPhone user data to train AI models. Baidu did not respond immediately to a request for comment. The absence of AI capabilities in the latest iPhones sold in China has become a major setback for Apple, as it faces declining market share in the world's biggest smartphone market due to growing competition from domestic brands including Huawei. Huawei, which returned to the high-end market in August with a phone using a Chinese-made chip, launched its Mate 70 series last month featuring AI capabilities powered by its proprietary large language model. Apple briefly fell out of China's top five smartphone vendors in the second quarter before recovering in the third quarter. The US company's smartphone sales in China still slipped 0.3 percent during the third quarter from a year earlier, while Huawei's sales surged 42 percent, according to research firm IDC. © Thomson Reuters 2024

Apple in talks with Tencent, ByteDance to roll out AI features in China, sources say

BEIJING, Dec 19 (Reuters) - Apple (AAPL.O), opens new tab is in talks with Tencent (0700.HK), opens new tab and TikTok owner ByteDance about integrating their artificial intelligence models into iPhones sold in China, according to three sources familiar with the matter. The U.S. firm started the rollout of OpenAI's ChatGPT into its devices this month, part of the Apple Intelligence product that allows its Siri voice assistant to tap the chatbot's expertise including on user queries about photos and documents such as presentations. ChatGPT is not available in China and the country's regulatory requirements mandate that generative AI services obtain government approval before public release, forcing Apple to seek local partners for its AI features at a time when its market share in the country is declining. Apple's discussions with Tencent and ByteDance on using their AI models are at a very early stage, said the sources, who declined to be named as the talks are not public. ByteDance declined to comment, while Apple and Tencent did not respond immediately to requests for comment. A successful partner for Apple's AI services in China could be a major winner in the country's increasingly crowded AI field where dozens of large language models have been launched by large tech firms as well as startups. They include ByteDance's Doubao, Tencent's Hunyuan and search engine giant Baidu's (9888.HK), opens new tab Ernie. Apple and Baidu have reportedly been in talks about using the latter's AI model in China, but The Information this month reported the discussions faced setbacks due to technical issues, including disputes over using iPhone user data to train AI models. Baidu did not respond immediately to a request for comment. The absence of AI capabilities in the latest iPhones sold in China has become a major setback for Apple, as it faces declining market share in the world's biggest smartphone market due to growing competition from domestic brands including Huawei. Huawei, which returned to the high-end market in August with a phone using a Chinese-made chip, launched its Mate 70 series last month featuring AI capabilities powered by its proprietary large language model. Apple briefly fell out of China's top five smartphone vendors in the second quarter before recovering in the third quarter. The U.S. company's smartphone sales in China still slipped 0.3% during the third quarter from a year earlier, while Huawei's sales surged 42%, according to research firm IDC. Reporting by Liam Mo in Beijing and Brenda Goh in Shanghai; Editing by Miyoung Kim and Jamie Freed Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence Brenda Goh Thomson Reuters Brenda Goh is Reuters' Shanghai bureau chief and oversees coverage of corporates in China. Brenda joined Reuters as a trainee in London in 2010 and has reported stories from over a dozen countries.

Apple in talks with Tencent, ByteDance to roll out AI features in China, sources say

ChatGPT is not available in China and the country's regulatory requirements mandate that generative AI services obtain government approval before public release, forcing Apple to seek local partners for its AI features at a time when its market share in the country is declining. Apple's discussions with Tencent and ByteDance on using their AI models are at a very early stage, said the sources, who declined to be named as the talks are not public. Apple is in talks with Tencent and TikTok owner ByteDance about integrating their artificial intelligence models into iPhones sold in China, according to three sources familiar with the matter. The US firm started the rollout of OpenAI's ChatGPT into its devices this month, part of the Apple Intelligence product that allows its Siri voice assistant to tap the chatbot's expertise including on user queries about photos and documents such as presentations. ChatGPT is not available in China and the country's regulatory requirements mandate that generative AI services obtain government approval before public release, forcing Apple to seek local partners for its AI features at a time when its market share in the country is declining. Apple's discussions with Tencent and ByteDance on using their AI models are at a very early stage, said the sources, who declined to be named as the talks are not public. ByteDance declined to comment, while Apple and Tencent did not respond immediately to requests for comment. A successful partner for Apple's AI services in China could be a major winner in the country's increasingly crowded AI field where dozens of large language models have been launched by large tech firms as well as startups. They include ByteDance's Doubao, Tencent's Hunyuan and search engine giant Baidu's Ernie. Apple and Baidu have reportedly been in talks about using the latter's AI model in China, but The Information this month reported the discussions faced setbacks due to technical issues, including disputes over using iPhone user data to train AI models. Baidu did not respond immediately to a request for comment. The absence of AI capabilities in the latest iPhones sold in China has become a major setback for Apple, as it faces declining market share in the world's biggest smartphone market due to growing competition from domestic brands including Huawei. Huawei, which returned to the high-end market in August with a phone using a Chinese-made chip, launched its Mate 70 series last month featuring AI capabilities powered by its proprietary large language model. Apple briefly fell out of China's top five smartphone vendors in the second quarter before recovering in the third quarter. The U.S. company's smartphone sales in China still slipped 0.3% during the third quarter from a year earlier, while Huawei's sales surged 42%, according to research firm IDC.

Report: Apple in Talks with Tencent, ByteDance for Chinese iPhone AI

Apple is reportedly negotiating with China's ByteDance and Tencent to bring their artificial intelligence models to iPhones sold in China, as the company adapts its AI strategy for the Chinese market. Apple began integrating OpenAI's ChatGPT into its devices globally earlier this month with the release of iOS 18.2, iPadOS 18.2, and macOS Sequoia 15.2, but ChatGPT is not accessible in China due to regulatory restrictions. Chinese law requires government approval before companies can release generative AI services to the public. Both ByteDance and Tencent have developed their own AI models - Doubao and Hunyuan respectively - which could potentially be integrated into Chinese iPhones if the talks prove successful. However, negotiations are said to be still in early stages, according to sources cited by Reuters. Apple is reported to have previously held talks with Baidu about similar AI integration. Any partnership could be particularly significant as Apple faces increasing competition in China's smartphone market. The company briefly dropped out of China's top five smartphone vendors in the second quarter of 2023 before recovering in the third quarter, though its sales still declined 0.3% year-over-year. Meanwhile, Huawei has gained momentum in the Chinese market, with sales surging 42% in the third quarter. The company's recent Mate 70 series features AI capabilities powered by its own home-grown large language model.

Apple Reportedly Pitches Chinese Tech Giants on AI Project | PYMNTS.com

Apple is reportedly seeking ways to add AI to its smartphones sold in ChatGPT-less China. The iPhone maker is in discussions with two Chinese tech giants -- Tencent and TikTok parent ByteDance -- about integrating their artificial intelligence (AI) models into its products, Reuters reported Thursday (Dec. 19), citing three sources familiar with the matter. The sources said the talks are at a very early stage. PYMNTS has contacted all three companies for comment but has not yet gotten a reply. Apple began adding OpenAI's ChatGPT into its devices earlier this month, letting its Siri voice assistant turn to the chatbot for user queries. However, ChatGPT is not available in China, and the country requires generative AI operators to get the government's OK before rolling out a product. According to Reuters, that has left Apple seeking local AI partners at a moment when its market share in China is slipping. The report argues that the lack of AI capabilities in the newest iPhones in China has hurt Apple as it faces competition from domestic smartphone makers such as Huawei, which recently launched its own AI-powered phone. Apple's smartphone sales in China fell 0.3% during the third quarter, while Huawei's jumped by 42%, the report added, citing data from IDC. Writing about the Apple/ChatGPT partnership last week, PYMNTS noted that it was a pivotal moment for the company's AI goals. "The integration of ChatGPT goes beyond enabling Siri to serve as a glorified trivia responder," that report said. "Instead, it positions Siri as a potentially indispensable tool for managing everyday life and, crucially, for participating in the voice-driven commerce ecosystem many companies vying to dominate." Research by PYMNTS Intelligence finds that 63% of consumers have expressed interest in AI-powered voice assistants that can help them with everyday tasks. Apple first debuted Apple Intelligence in October. Industry experts contend the company's embrace of the technology could transform how people shop, while also arguing against the notion that Apple has fallen behind in the AI race. "Apple may be late to the AI surge compared to Google and Amazon, which have been adding AI to products for years," The Big Phone Store CEO Steven Athwal told PYMNTS. "But Apple has always been about timing and refinement. While others rushed to put out the latest in AI tech, Apple focused on privacy, security and user experience."

Apple talking to Tencent, ByteDance over using their AI: sources

STORY: Apple is talking to Tencent and TikTok-owner ByteDance about using their AI systems in China. That's according to Reuters sources. The tech giant has started to roll out iPhones equipped with OpenAI's ChatGPT. But the U.S. bot isn't authorised for use in China, forcing Apple to find an alternative. The sources say discussions with Tencent and ByteDance are at an early stage. And there was no comment from any of the companies involved. Winning the Apple deal could be big for any Chinese firm, with the country's market for AI systems crowded with different players. Dozens of different models have been launched there, by both big firms and startups. Besides Tencent and ByteDance, that includes the Ernie chatbot from search engine giant Baidu. Apple has reportedly also been talking to Baidu over its systems. But media reports this month suggest they have faced setbacks over technical issues, and disputes over access to iPhone user data. The absence of AI capabilities on Apple's products is being seen as a big negative in China, where the company faces declining market share. It has faced a battle to stay in the top five smartphone sellers there amid mounting competition from local rivals. Chinese giant Huawei already has a handset on the market with built-in AI powered by its own proprietary model.

Apple in Talks With Tencent, ByteDance For AI Models in China iPhones

Apple is in early talks with Tencent and ByteDance about using its artificial intelligence models in iPhones sold in China, Reuters reported. China has tight rules over AI, making it challenging for foreign companies to operate their AI models in the country without regulatory approval. It isn't clear what type of partnership Apple is seeking with Tencent and ByteDance. In the U.S., Apple

Apple Reportedly In Talks With Tencent, TikTok-Parent ByteDance To Roll Out AI Features In China - Tencent Holdings (OTC:TCEHY)

Apple Inc. AAPL is reportedly engaging in discussions with Tencent TCEHY and TikTok's parent company, ByteDance, to integrate their AI models into iPhones sold in China. What Happened: The U.S. tech giant began incorporating OpenAI's ChatGPT into its devices earlier this month. However, due to regulatory constraints in China, Apple is seeking local partners to enhance AI features on its devices. The discussions with Tencent and ByteDance are reportedly in preliminary stages, sources indicated, Reuters reported on Thursday. Apple's move comes as it faces declining market share in China, the world's largest smartphone market. The absence of AI capabilities in its latest iPhones has been a significant drawback, especially with increasing competition from domestic brands like Huawei. Apple, Tencent and ByteDance have yet to respond to Benzinga's queries. See Also: Ahead Of Trump's Return To White House, US Approves $406M Grant For Taiwan's Chipmaker GlobalWafers Why It Matters: The potential collaboration with Tencent and ByteDance is critical for Apple as it navigates the competitive Chinese market. In recent months, Apple has faced challenges in China, including a crackdown on app store fees. In August, Apple intensified efforts to compel Tencent and ByteDance to close loopholes that allowed in-app creators to bypass Apple's 30% commission. Moreover, Apple's AI ambitions have been met with skepticism. In October, an analyst suggested that Apple's much-anticipated AI system, Apple Intelligence, might not meet high expectations. This underscores the importance of Apple's current talks with Chinese tech giants to bolster its AI capabilities. In November, Tim Cook expressed optimism about Apple's performance in China, highlighting positive signs despite economic challenges. However, he refrained from commenting on the potential impact of economic stimulus. This context emphasizes the strategic importance of Apple's AI integration efforts in maintaining its market position in China. Read Next: Micron Gets Investment From White House, China Launches Antitrust Investigation On Nvidia, Apple Faces $1.2 Billion Lawsuit In California & More: Consumer Tech News (December 9-13) Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. Image via Shutterstock Market News and Data brought to you by Benzinga APIs

Apple talking to Tencent, ByteDance over using their AI: sources

Apple talking to Tencent, ByteDance over using their AI: sources Apple is in talks with Tencent and TikTok-owner ByteDance about integrating their artificial intelligence models into iPhones sold in China, according to three sources familiar with the matter. Julian Satterthwaite reports

Apple talks to Tencent, ByteDance to launch Apple Intelligence in China

Apple Intelligence has a long way to go before launching in China Apple is reportedly in talks with ByteDance and Tencent to integrate their AI models with Apple Intelligence in China, so it can expand the feature set to the lucrative market. Apple is slowly rolling out Apple Intelligence to iPhone, iPad, and Mac, by gradually introducing it into new markets. However, to do so in China, it's seeking assistance from other companies. Apple is said to be in discussions with Tencent and ByteDance, the owner of TikTok, about Apple Intelligence. Reuters reports on Thursday that Apple wants to use AI models from the two companies to flesh out the version of Apple Intelligence offered to users in China. Sources say the talks are at an early stage and are not publicly known about. None of the three companies responded to the report's request for comment. Apple's problem is that it has to abide by the regulatory restrictions in place in China, as with other countries around the world. The Chinese government has to authorize AI providers to offer services to consumers, and Apple hasn't received that approval for Apple Intelligence functions. To work around the regulations, Apple intends to use a move that it has done before: partner with a company in China who is already approved to operate there. Models such as Google's Gemini and OpenAI's ChatGPT are not authorized in China, so Apple cannot use them. Instead, it has to tap local tech companies. Its first attempt is with Baidu, the equivalent of China's Google, ran into problems, according to reports from December 4. Baidu already performs searches for iPhone users in the country, which made a tie-up a natural progression in the business relationship. However, Baidu's large language models (LLMs) haven't provided the kind of responses Apple wants, with a lack of ability to personalize responses to the user. Part of the breakdown is Baidu wanting to retain user data to improve its training. This is something the user privacy-focused Apple doesn't want to permit. Since Apple has to find a local partner, Tencent and ByteDance have become the latest suitors. Tencent is another big-tech company, with a sprawling empire ranging from social media and online gaming to cloud computing and payment systems. ByteDance is the firm behind TikTok, which has worked to perfect its own models to serve content to users around the world. Both companies have extensive experience with their own LLMs, which makes them potential partners for Apple Intelligence. One of the regulatory issues Apple faces in China is data ownership, with the government wanting Chinese user data to be stored in the country instead of abroad. Apple already meets this requirement for iCloud user data, as the Chinese-based firm Guizhou-Cloud Big Data (GCBD) is the legal owner of the data in China. This arrangement effectively allows for the Chinese authorities to demand access to data owned by GCBD, not Apple, which shields Apple from issues with U.S. regulations that prevent such requests from happening. It is probable that any agreement with a firm in China involving Apple Intelligence will deal with a similar data ownership matter the same way. The specter of Chinese government ownership is also apparent with any company Apple deals with in China. The government has a stake in a domestic subsidiary of Tencent, which plausibly eases the ability for Chinese regulators to demand access to user data. The West has similar fears that China has influence over ByteDance, so it could potentially have access to TikTok user data from around the world. This has led to legal issues in the United States and the possible sale of the social network. This potential access to user data is probably one of the main factors behind China's in-country data storage regulations. Apple has only one real goal with the talks. It wants Apple Intelligence to be available in China. Doing so is imperative to Apple, as it has lost some ground in China in terms of iPhone sales. With local rivals offering their own AI-based features to consumers, Apple's lack of similar functions makes the iPhone less attractive to consumers. By successfully partnering up and expanding Apple Intelligence into China, this gives Apple an opportunity to reinvigorate sales. It's a big enough concern that Apple CEO Tim Cook visited China in November, after insisting in October that Apple was "working hard" on an Apple Intelligence debut. As for when Apple Intelligence could actually become available in China, the earliest opportunity would be in April 2025 as part of an expanded language support update. This is dependent on finding a local partner and working with them on the feature, and has every possibility of slipping further down the road.

Baidu shares dip on Apple's AI talks in China By Investing.com

Investing.com -- Baidu stock (NASDAQ:BIDU) fell 2% following reports from Reuters that Apple (NASDAQ:AAPL) is in discussions with Chinese tech giants Tencent (HK:0700) and ByteDance to incorporate their artificial intelligence models into iPhones in China. The move comes as Apple integrates OpenAI's ChatGPT into its devices outside of China. However, due to China's regulatory requirements for generative AI services, Apple has been compelled to seek local partnerships for its AI features. This development is significant for Baidu, which has been in its own talks with Apple about using its AI model in China, though these discussions have reportedly run into technical setbacks. Apple's search for AI partners in China is seen as a strategic response to its declining market share in the country, where domestic brands like Huawei are offering smartphones with advanced AI capabilities. Huawei's recent launch of the Mate 70 series, featuring its own large language model, has intensified competition in the high-end market. The potential integration of Tencent and ByteDance's AI into Apple's products could present a challenge for Baidu, which has been vying for the same opportunity. Baidu's shares in Hong Kong saw a sharper decline than the Hang Seng index, with a drop of 4.2% compared to the index's 0.6% fall. Meanwhile, Tencent's shares experienced a rise of 2.3%. The Reuters report highlights the increasing importance of AI capabilities in smartphones, particularly in the competitive Chinese market. Apple's negotiations with Tencent and ByteDance are still in the early stages, and no immediate comments were received from the companies involved. As Apple grapples with the need for regulatory compliance and seeks to maintain its presence in the Chinese market, the outcome of these talks could have significant implications for the AI landscape in China, and for companies like Baidu that are competing in this space.

Apple Intelligence For iPhones Sold In China Will Only Be Possible If Talks With Tencent And ByteDance Bear Fruit, According To The Latest Report

The absence of ChatGPT in China has complicated things as far as Apple Intelligence support in the region is concerned, but that will mean iPhone owners in the region cannot experience generative AI features like they would in other countries. Realizing the significance of China regarding iPhone sales, leaving it out of the generative AI conversation can have deleterious effects, which is why a new report states that Apple is in talks with giants like Tencent and ByteDance which, if fruitful, will bring their AI models to iPhones. Siri will eventually be integrated with ChatGPT, with compatible products able to fire up Apple Intelligence effortlessly in a multitude of regions. Unfortunately, due to regulatory issues that require government approval, Chinese customers will be left out of the loop and will not be able to take advantage of generative AI features unless Apple partners with some local entities. According to Reuters, that is exactly what is happening, with early talks said to be taking place with Tencent and ByteDance, with the hopes that these two firms bring their AI models to iPhones. Both Tencent and ByteDance have already developed their AI models, which are Doubao and Hunyuan. Just like how ChatGPT will be integrated with iPhone models sold outside of China, Doubao and Hunyuan could be fused with Apple's devices, assuming the talks between the three companies reach a successful stage. At this point, the Cupertino firm may have little choice but to agree to the majority of terms of Tencent and ByteDance present because there is no other avenue to bring Apple Intelligence to iPhones in China other than this. While the company has continued its dominating run in the country, Huawei is adamant of reclaimer its lost market share, and with other players also aiming to grab a piece of the piece, bringing Apple Intelligence support to China should be the company's number one priority.

Apple Intelligence Set to Launch in China Soon

Apple is in talks with Chinese giants Tencent and TikTok's parent company ByteDance to introduce Apple's AI feature suite, Apple Intelligence, to iPhones in China. As per reports, discussions are still at a very early stage. The delay in Apple Intelligence's release in China is mostly due to ChatGPT's unavailability in the country. This has reportedly forced Apple to partner with local tech giants like Tencent and ByteDance. Apple Intelligence was made available in October with the release of iOS 18.1, iPadOS 18.1 and macOS 15.1 for iPhone, iPad, and Macbook. The latest iOS/iPadOS 18.2 and the macOS Sequoia update introduce new features for Apple Intelligence. These include the Image Playground, Genmoji, an upgrade for the Writing Tools, and Siri - which are now powered by ChatGPT. A few weeks ago, it was also reported that Apple was facing difficulties in releasing Apple Intelligence in China, which warranted a long process of partnering with local companies. Another report said that Apple was also trying to adapt Baidu's AI models for users in China. Notably, China is also Apple's second-biggest market after the United States. Recently, Apple Intelligence came under fire for sending out an incorrect notification on the iPhone regarding a BBC news report about the arrest of Luigi Mangione, the lead suspect in the murder of UnitedHealthcare CEO Brian Thompson. "Luigi Mangione shoots himself..." read a part of the notification. That said, China has been investing heavily in AI. Last month, Tencent released a large 389 billion parameter open-source model, Hunyuan Large, with 52 billion active parameters. It outperforms the Llama3.1-70B model on several benchmarks in English and Chinese. The model's performance was also comparable with Meta's flagship Llama 3.1-405B model on tasks involving language understanding, coding, maths and logical reasoning. A few weeks ago, Tencent also launched an open-source AI video generator, competing with OpenAI's Sora. Recent reports also revealed that ByteDance was the second-biggest buyer of Nvidia's Hopper GPUs after Microsoft. This is despite the restrictions the US government imposed on NVIDIA's selling of chips in China.

Apple Intelligence Chinese launch remains problematic during talks

An Apple Intelligence Chinese launch isn't looking much closer, as the company continues forced talks with local companies about partnerships. Apple reportedly wanted to use its own generative AI models in China, but that would require government approval which - it has been strongly implied - would not be forthcoming ... Apple can't just create a Chinese version of Apple Intelligence, as the government requires all AI systems to be submitted for approval - and we've noted before that the reason for this is obvious. The Chinese government exerts a tight stranglehold on sources of online information within the country. Google pulled out of the country after it was forced to censor search results, and many other western platforms are blocked by the Great Firewall of China, including Facebook, X, and Wikipedia. Many search terms are also blocked when using the locally-owned Baidu search engine. AI products of course provide another means of effectively carrying out web searches, and it's clear the government wants to be able to control these too, hence effectively forcing foreign companies to use approved Chinese-owned models. The Chinese government has effectively told Apple that it won't be allowed to launch Apple Intelligence in the country unless it partners with pre-approved local companies. A top government official has warned that an Apple Intelligence launch in China would be a "difficult and long process" unless the iPhone maker partners with a local AI company. Working with a Chinese company would instead be "simple and straightforward." Baidu was said to have been one of the companies selected by Apple, but the two sides were said to be clashing over both technical and privacy issues. Baidu reportedly wants to retain data from iPhone users who make AI-powered searches, which is the polar opposite of how Apple Intelligence and Private Cloud Compute are designed. Reuters reports that Apple is also in talks with two other Chinese tech giants about using their AI models. Appl is in talks with Tencent and TikTok owner ByteDance about integrating their artificial intelligence models into iPhones sold in China, according to three sources familiar with the matter. Little progress appears to have been made to date, however. Apple's discussions with Tencent and ByteDance on using their AI models are at a very early stage, said the sources, who declined to be named as the talks are not public. We've argued before that while it would be nice to imagine Apple will stick to its guns on privacy, the reality is that it has no choice but to partner with local companies who apply very different standards.