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APPLE IN TALKS WITH TENCENT, BYTEDANCE TO ROLL OUT AI FEATURES IN CHINA, SOURCES
SAY

By Liam Mo and Brenda Goh
December 19, 202412:42 PM GMT+8Updated an hour ago
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A man check his phone near an Apple logo outside its store in Shanghai, China
September 13, 2023. REUTERS/Aly Song/File Photo Purchase Licensing Rights, opens
new tab
 * Summary
 * Companies

 * Apple talks with Tencent, ByteDance are at a very early stage-sources
 * Tech firms and startups have launched dozens of AI models in China
 * Apple needs local partner as ChatGPT not available in China

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.
Advertisement · Scroll to continue

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.
Advertisement · Scroll to continue

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.

The Reuters Daily Briefing newsletter provides all the news you need to start
your day. Sign up here.

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

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Purchase Licensing Rights
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.

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TECHNOLOGY


 * AMAZON WORKERS TO STRIKE AT MULTIPLE US WAREHOUSES DURING BUSY HOLIDAY SEASON
   
   World at Workcategory · December 19, 2024 · 1:13 PM GMT+8 · 18 min ago
   
   Thousands of Amazon workers plan to walk off the job starting Thursday
   morning in the crucial final days before Christmas, after union officials
   said the retailer failed to come to the bargaining table.

 * Artificial IntelligencecategoryApple in talks with Tencent, ByteDance to roll
   out AI features in China, sources say12:42 PM GMT+8 · Updated an hour ago
 * TechnologycategoryPowell says Fed cannot hold bitcoin, not seeking to change
   that10:20 AM GMT+8
 * Boards, Policy & RegulationcategoryApple hits out at Meta's numerous
   interoperability requests9:58 AM GMT+8
 * TechnologycategoryUS considers ban on China's TP-Link over security concerns,
   WSJ reports9:53 AM GMT+8




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