Apple Reportedly Pitches Chinese Tech Giants on AI Project

Apple is reportedly seeking ways to add AI to its smartphones sold in ChatGPT-less China.

The iPhone maker is in discussions with two Chinese tech giants — Tencent and TikTok parent ByteDance — about integrating their artificial intelligence (AI) models into its products, Reuters reported Thursday (Dec. 19), citing three sources familiar with the matter.

The sources said the talks are at a very early stage. PYMNTS has contacted all three companies for comment but has not yet gotten a reply.

Apple began adding OpenAI’s ChatGPT into its devices earlier this month, letting its Siri voice assistant turn to the chatbot for user queries.

However, ChatGPT is not available in China, and the country requires generative AI operators to get the government’s OK before rolling out a product. According to Reuters, that has left Apple seeking local AI partners at a moment when its market share in China is slipping.

The report argues that the lack of AI capabilities in the newest iPhones in China has hurt Apple as it faces competition from domestic smartphone makers such as Huawei, which recently launched its own AI-powered phone.

Apple’s smartphone sales in China fell 0.3% during the third quarter, while Huawei’s jumped by 42%, the report added, citing data from IDC.

Writing about the Apple/ChatGPT partnership last week, PYMNTS noted that it was a pivotal moment for the company’s AI goals.

“The integration of ChatGPT goes beyond enabling Siri to serve as a glorified trivia responder,” that report said. “Instead, it positions Siri as a potentially indispensable tool for managing everyday life and, crucially, for participating in the voice-driven commerce ecosystem many companies vying to dominate.”

Research by PYMNTS Intelligence finds that 63% of consumers have expressed interest in AI-powered voice assistants that can help them with everyday tasks.

Apple first debuted Apple Intelligence in October.  Industry experts contend the company’s embrace of the technology could transform how people shop, while also arguing against the notion that Apple has fallen behind in the AI race.

“Apple may be late to the AI surge compared to Google and Amazon, which have been adding AI to products for years,” The Big Phone Store CEO Steven Athwal told PYMNTS. “But Apple has always been about timing and refinement. While others rushed to put out the latest in AI tech, Apple focused on privacy, security and user experience.”