This follows the recent integration of OpenAI's ChatGPT into Apple devices via the Apple Intelligence initiative, enhancing Siri's functionality by enabling access to the chatbot's knowledge base for user queries related to photos, documents, and presentations.
However, ChatGPT is not accessible in China, where regulatory requirements necessitate that generative AI services receive government approval prior to public launch. This has compelled Apple to pursue local partnerships for its AI functionalities, especially as its market share in the region continues to decline.
According to the sources, the discussions between Apple, Tencent, and ByteDance regarding the utilization of their AI models are still in the preliminary stages, and the sources requested anonymity due to the confidential nature of the talks.
While ByteDance has chosen not to comment, Apple and Tencent have not yet responded to inquiries for information.
Establishing a successful partnership for AI services in China could position Apple as a significant player in the country's competitive AI landscape, which has seen numerous large language models introduced by both major tech companies and startups.
Notable examples include ByteDance's Doubao, Tencent's Hunyuan, and Baidu's Ernie.
Additionally, reports indicate that Apple and Baidu have been in discussions about incorporating Baidu's AI model in China; however, recent reports suggest that these talks have encountered challenges due to technical issues, including disagreements over the use of iPhone user data for training AI models.
Baidu has not yet provided a response to the request for comment.
The lack of AI features in the latest iPhones available in China represents a significant challenge for Apple, which is experiencing a decline in market share in the largest smartphone market globally, largely due to intensified competition from local brands such as Huawei.
Huawei made a comeback in the premium market in August with a smartphone utilizing a domestically produced chip and introduced its Mate 70 series last month, which includes AI functionalities driven by its own large language model.
Apple experienced a temporary decline from its position among the top five smartphone manufacturers in China during the second quarter, subsequently regaining its standing in the third quarter. However, the company's third-quarter smartphone sales in China still reflect a 0.3% year-over-year decrease, contrasting with Huawei's notable 42% surge in sales, according to IDC research.