How Apple may be planning to do a Samsung in China

Apple may reportedly be planning to do a 'Samsung' in China. According to a report in Bloomberg, Apple is in talks with Chinese tech giant Baidu about incorporating Baidu's generative artificial intelligence (AI) technology into iPhones and other

Apple devices

specifically for the Chinese market. This potential partnership would be a significant win for Baidu, solidifying its position as a leader in domestic AI.
Incidentally, Apple's main competitor in the smartphone market, Samsung, already leverages Baidu's AI technology for its latest Galaxy phones sold in China.

Citing sources familiar with the matter, Bloomberg relays that Apple initiated discussions regarding the use of Baidu's AI in its devices. The need for a local partner stems from Chinese regulations requiring all AI models to undergo government vetting before use. For those unaware, Google does not operate in China.
Baidu stands out as a frontrunner in China's AI race, where both established tech companies and startups are pouring significant resources into developing their own AI solutions to rival the likes of OpenAI's ChatGPT. Notably, these foreign AI services are restricted within China's tightly controlled online environment.

While Baidu's US-listed shares experienced an initial surge of 5% on the news, they ultimately closed with a minor gain of less than 1%. It's important to remember, as Bloomberg highlights, that Apple has previously held discussions with other potential partners, including Google's OpenAI. This suggests Apple might adopt a multi-partner approach similar to its strategy with search engines in its web browser.
This news comes on the heels of a Bloomberg report earlier this week detailing China's efforts to mobilize resources in its pursuit of AI dominance, putting them in direct competition with the United States. Samsung, Apple's main competitor in the smartphone market, already leverages Baidu's AI technology for its latest Galaxy phones sold in China.