Shortly after rumors surfaced about Apple's search for a local AI provider in China to circumvent regulatory hurdles, reports now suggest that Apple has finalized a partnership with Baidu for iPhone AI services in the region. A March 22 report highlighted Apple's exploration of potential Chinese partners for generative AI technology, aiming to navigate the country's strict regulatory landscape. Baidu has emerged as the chosen partner, according to insights from a local China Star Market report and confirmed by anonymous sources cited by SCMP, focusing on compliance factors as a key reason for the selection.
Further corroborated by a report from Cailian Press, which the Wall Street Journal picked up, this collaboration is expected to integrate Baidu's generative AI technology into future iOS 18 and macOS 15 releases. Baidu's Ernie Bot, already approved by Chinese regulators and designed for generating responses based on a knowledge graph, aligns with China's requirements for pre-approval of generative AI models, facilitating Apple's expansion of AI services in the market without navigating the compliance process independently.
Previously, in April 2023, Baidu had taken legal action against Apple to prevent the proliferation of counterfeit Ernie Bot applications on the App Store, indicating a complex relationship between the two tech giants prior to this partnership.
It's important to note that this partnership appears to be specific to the Chinese market, with Apple expected to continue its AI developments independently or through other partnerships outside mainland China. Despite no official confirmation from either Apple or Baidu, the speculation has positively impacted Baidu's stock, which saw a significant increase following the news.
As Apple plans to unveil more AI features to consumers, CEO Tim Cook hinted at further details to be disclosed later in 2024, potentially at WWDC 2024, marking a pivotal moment for Apple's AI strategy and its implications for global and Chinese markets alike.
