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Apple Hunts for AI Partners in China Amid Tech Tensions

Daniel Kim Views  

The Wall Street Journal (WSJ) reported on the 20th that Apple is looking for a generative artificial intelligence (AI) partner in China.

On June 10, Apple announced at the World Developers Conference (WWDC) that it would partner with OpenAI to provide AI features linked with ChatGPT on its devices, including the iPhone set to launch this year. However, as China bans Western AI models, including ChatGPT, Apple is reportedly looking for an alternative. Citing industry insiders, WSJ reported that Apple has coordinated with Chinese IT companies such as Baidu, Alibaba, and ByteDance.

In China, companies must obtain approval to use AI chatbots based on a large language model (LLM). Up until March, the China Internet Information Office (CAC) had approved 117 Chinese generative AIs. Earlier this year, Apple sought approval for a foreign AI chatbot in China but concluded it was not feasible. Consequently, they started looking for alternatives by cooperating with Chinese companies.

Samsung has already launched an AI smartphone in China, partnering with Baidu and Meitu. For other countries, such as the U.S., Samsung partnered with Google. Baidu’s main features are convenient searches and summarizing text, while Meitu provides photo editing features. However, WSJ reported that some users were dissatisfied, saying Baidu AI is inferior to Google AI. Nonetheless, Chinese search engines only reveal positive remarks about Baidu AI.

Due to political conflict between the U.S. and China, Apple is competing with local companies as patriotic consumption is rising. Counterpoint Research estimated Huawei’s market share in China to grow from 13% last year to 17% this year, while Apple’s share is expected to shrink from 18% to 16%.

Daniel Kim
content@viewusglobal.com

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