China’s iPhone AI features may be powered by Baidu, according to a report

The Wall Street Journal revealed on Friday that Apple and Baidu <9888.HK> have had first discussions over the use of the Chinese company’s generative artificial intelligence technology in Apple products.

Remarks from Reuters were not immediately returned by Apple or Baidu.

These events are not surprising, considering Tim Cook has been observed in China in recent days. Indeed, it has been claimed that Apple is in discussions with Google and OpenAI to include their AI models in iPhones; nonetheless, China remains a critical market for the corporation. Furthermore, in order to get a comparable agreement for AI capabilities on iPhones in China, Apple will need a local AI relationship since Google is not accessible in the area.

In addition, Apple has significant plans for AI with iOS 18, which will be unveiled in a few months at the WWDC 2024 keynote. China is a significant iPhone market and has long been a key component of Apple’s manufacturing strategy. Following many lockdowns brought on by COVID, the corporation has come to the realization that it has to lessen its reliance on the area.

With its departure from China, Apple has already begun to prepare for the future, with plans to expand into India and Vietnam. Nevertheless, Cook’s visit to the area, even if it is just to open a new shop and meet with the Chinese team, demonstrates Apple’s continued value and commitment to the market.