According to a report by Cailian Press, technology giant Apple is in talks with Chinese Internet giant Baidu to integrate Ernie Bot, Baidu’s large language model (LLM), into the iPhone 16 and other products specifically aimed at the Chinese market. The move comes amid Apple’s efforts to comply with China’s stricter rules on AI-generated content.

The report claims that Apple will use Ernie Bot for the iOS 18 operating system and Mac OS in China. Apple reportedly met with other Chinese companies such as Alibaba and an artificial intelligence company affiliated with Tsinghua University before choosing Baidu.

Apple will likely stick with its own in-house AI model or Google’s Gemini model outside China, but will opt for a solution developed locally on the mainland to ensure compliance with Chinese regulations. The news follows Apple CEO Tim Cook’s visit to China, where he reaffirmed Apple’s commitment to the market and met with key suppliers. Tim Cook praised Chinese suppliers for their steps towards carbon neutrality.

Cook announced plans to expand Apple’s research center in Shanghai and create a new applied research laboratory in Shenzhen. This focus is on China, where iPhone sales are down 24% year-on-year (Counterpoint Research), likely due to competition from Huawei.

The potential partnership is in line with Samsung’s strategy. Samsung uses Google’s Gemini AI globally, but has incorporated Baidu’s Ernie into its latest Galaxy S24 series in China for its “Search Circle” feature.

But both Apple and Baidu face increasing regulatory hurdles. China has established detailed rules governing domestic generative AI services and ensuring compliance with government-approved content.

News of a possible partnership between Apple and Baidu caused Baidu’s shares in Hong Kong to rise 6%. Analysts see this as a potential win for Baidu not only to build its Ernie Bot brand, but also to accelerate AI monetization and gain an advantage over Chinese rivals.

Apple has also officially announced the dates for the 2024 Worldwide Developers Conference (WWDC), which will take place virtually from June 10-14. The company is expected to announce iOS 18 with generative artificial intelligence features. It’s also rumored that Apple may launch an AI App Store at WWDC 2024, marking a shift in its AI strategy, offering a platform for a variety of AI apps from different developers, including its own revamped Siri and offerings from rivals like Google. There are also speculations. and Baidu.