Apple Inc. is in talks with Tencent Holdings Ltd and ByteDance Ltd over the use of their AI models in products they will sell in China. The talks are at a preliminary stage, but show how Apple is shifting strategically towards compliance with local laws and finding appropriate partners in this challenging market.
Apple Inc. is a California-based technology company known for its distinct consumer electronics, the iPhone being the most popular. The latest models, mainly the iPhone 15 and iPhone 16 series, have technology embedded through the Apple Intelligence System. This system runs on innovative features such as writing assistance, notification summaries, and enhanced Siri capabilities.
Apple made the move just after announcing the second wave of its Apple Intelligence AI initiatives. However, generative AI applications such as ChatGPT are not available in China due to strict regulatory approval requirements as well as language issues. The Chinese government wants all generative AI companies to get approval before operating in the country. OpenAI, the maker of ChatGPT, will never allow the kind of scrutiny that the Chinese government wants to have to let them operate in the country. Apple knows this, which is why it wants to partner with a local player.
The approach here reflects Apple’s efficiency in responding to the regulative and geopolitical challenges. Despite being seemingly behind all the major tech companies in implementing AI, the company seems to be making deals when they matter the most.
These collaborations are highly important in the context of the ongoing trade war between the two countries. Apple knows that getting too close to China’s critical infrastructure for AI ventures will cause issues. However, there is a huge AI market for everyday applications that the Chinese people use. ByteDance and Tencent are two of the biggest companies that serve these consumers and by collaborating with them, Apple seems to be playing the safest game among all the tech companies.
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Disclosure: None. This article was originally published at Insider Monkey.