Apple teams up with Baidu to launch AI services in China in 2025, faces user data dispute

Apple and Baidu partner to launch AI services in China by 2025, facing data use disputes.

: Apple will collaborate with Baidu to bring generative AI services to China by 2025 using Baidu's Ernie 4.0 model. The partnership took eight months to finalize and includes Apple covering costs for retraining and fine-tuning AI models. A major point of contention remains their disagreement over data use, as Baidu seeks to analyze iPhone user data while Apple maintains strict privacy policies. The move aims to recapture Apple's declining revenue in China amidst competition from local brands.

Apple announced a partnership with Chinese tech giant Baidu to implement generative AI services on its devices in China by 2025, leveraging Baidu's Ernie 4.0 model. The collaboration intends to enhance the AI capabilities of Apple products like the iPhone, Mac, and iPad and reposition Apple in the competitive Chinese market.

The agreement required nearly eight months to conclude, with Apple agreeing to compensate Baidu for model utilization and adjustments to meet its specific operational requirements. Despite this, Apple and Baidu remain in disagreement over the use of iPhone user data; Baidu is interested in using this data to improve AI performance, while Apple is stringent about privacy.

Additionally, Apple's goal to integrate Baidu’s AI models into Siri to enhance search results underscores the importance of strategic collaborations in China. The ongoing competition from entities such as Huawei necessitates partnerships like the one with Baidu to offset declining market performance marked by reduced iPhone 16 sales in China.

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