According to Reuters, citing three informed sources, Apple is in negotiations with Tencent and ByteDance to explore the integration of these two Chinese companies' artificial intelligence (AI) models into the iPhone for the Chinese market. This initiative is part of Apple's AI system, Apple Intelligence, and starting this month, Apple has integrated ChatGPT chatbot functionality into iPhones in global markets.

Concept Phone Apple (2)

Image Source Note: Image generated by AI, licensed by service provider Midjourney

Informed sources revealed that Apple's discussions with Tencent and ByteDance primarily focus on utilizing the AI models from the latter two companies. These negotiations are currently in the early stages, and details have yet to be finalized.

It is worth noting that previous reports indicated Apple had been in talks with Baidu to integrate Baidu's AI models into the iPhone, but negotiations were stalled due to technical issues. The main obstacle to cooperation was the disagreement over whether to allow the use of iPhone user data to train the AI models.

As of the time of publication, ByteDance, Apple, and Tencent have not yet responded to requests for comments. Apple's AI strategic move in the Chinese market indicates its emphasis on localization and user experience, while also highlighting the challenges and complexities faced by multinational tech companies in the Chinese market.