Apple to use Baidu’s AI for iPhone 16 series in China, Google’s Gemini to power devices in other regions

The report suggests that Apple will incorporate Baidu’s Ernie Bot into its iPhone 16, Mac OS, and iOS 18 specifically for the mainland Chinese market, following discussions with various Chinese companies including Alibaba Group Holding and an AI company affiliated with Tsinghua University.

While Apple will continue to use its own AI model outside of China, it is opting for locally-built technology within the mainland market due to compliance considerations. Rumours have also suggested that Apple may also get Google to put their Gemini AI bot into Baidu’s shares surged by up to 6 per cent in Hong Kong following the news, closing at Hong Kong dollar 100 for the day.

This development follows initial talks between Apple and Baidu reported by the Wall Street Journal last Friday, signalling a potential collaboration between the two tech giants. The decision to incorporate Baidu’s AI technology into Apple products in China coincides with Apple CEO Tim Cook’s recent visit to China, during which he reaffirmed Apple’s commitment to the Chinese market and engaged with key Chinese suppliers.