US-based tech giant Apple is in preliminary discussions with Tencent and ByteDance to integrate their artificial intelligence (AI) models into iPhones sold in China, Reuters has reported citing sources.

This move is in line with Apple’s recent rollout of OpenAI’s ChatGPT in its devices, enhancing Siri’s capabilities.

However, ChatGPT is unavailable in China due to the country’s regulatory requirements, which mandate government approval for generative AI services before public release.

As a result, Apple is said to be seeking local partners for its AI features.

Sources indicate that Apple’s discussions with Tencent and ByteDance are in the early stages.

A successful partnership could significantly impact China’s AI sector, where numerous large language models have emerged from major tech firms and startups, such as ByteDance’s Doubao, Tencent’s Hunyuan, and Baidu’s Ernie.

Apple and Baidu have reportedly discussed using Baidu’s AI model in China, but technical issues, including disputes over iPhone user data for AI training, have caused setbacks.

The absence of AI features in the latest iPhones sold in China has affected Apple’s market share amid competition from domestic brands like Huawei.

Huawei re-entered the high-end market in August with a phone featuring a Chinese-made chip and launched its Mate 70 series with AI capabilities powered by its proprietary large language model.

Apple briefly fell out of China’s top five smartphone vendors in the second quarter but recovered in the third quarter.

Earlier in December 2024, reports of Apple collaborating with Broadcom  to develop its inaugural server chip specifically intended for AI processing surfaced.

This initiative is said to align Apple with other technology companies that have developed proprietary chips to power compute-intensive AI services and cut down dependence on NVIDIA‘s costly and limited-supply processors.

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