Apple and Baidu Collaborate on AI for iPhones in China

(Reuters) – Apple (NASDAQ:AAPL) and Baidu (NASDAQ:BIDU) are working to incorporate AI features into iPhones sold in China, facing challenges that may negatively impact the tech giant's phone sales in the country, as reported by The Information on Wednesday.

The companies are adapting Baidu's large language models (LLMs) for iPhone users but are encountering issues, including the models' understanding of prompts and their accuracy in responding to common scenarios.

Apple and Baidu did not immediately respond to Reuters' inquiries for comment.

Sales of iPhones in China have declined by 0.3%, while rival Huawei experienced a 42% increase in sales during the third quarter, according to research firm IDC, amidst intensifying competition in the world's largest smartphone market.

Apple's long-anticipated iPhone 16 launch in September faced criticism in China due to its absence of artificial intelligence features.

Additionally, Apple's privacy policies restrict data collection from iPhone users making AI-related queries, while Baidu seeks to collect and analyze this data.

Baidu's most advanced model, Ernie 4.0, is reportedly being used as the foundation for Apple's generative AI services on the iPhone, Mac, and iPad, according to sources familiar with the matter.

Furthermore, Siri is expected to integrate Baidu's AI models, as per the report.