TMTPOST -- Recent report showcased Apple Inc. may find more local partners to bring Apple Intelligence, its advanced personal artificial intelligence (AI) system, to iPhone in China.

Credit:Apple

Apple is discussing with Zhipu AI about deployment of the Beijing-based unicorn's large model into iPhones sold in China, Chinese news media outlet Yicai learned. Zhipu, an AI startup originating from Tsinghua University's Computer Science Department, was founded in 2019. Zhipu in August has launched its large video generation model product, known as Ying, providing Chinese equivalents of OpenAI's Sora. The startup rolled out a new AI agent called AutoGLM in late October, coinciding with the October 28 release of Apple's AI assistant, creating significant buzz in the AI tech community.

If Yicai's report is accurate, there are three more Chinese companies that are involved in Apple's efforts to launch its cutting-edge AI features on iPhone in China. Apple is in talks with tech giant Tencent and ByteDance, the Chinese parent company of TikTok, flirting with the idea of integrating, Reuters reported earlier this week, citing sources familiar with the matter. The talks are at a very early stage, according to the report.

The Wall Street Journal reported in June that Apple is looking for local partners to offer AI services since OpenAI's ChatGPT and other Western AI models aren't available in China. Apple has been reportedly holding talks with Baidu, Alibaba group, and Beijing startup Baichuan AI, but there hasn't been news of an agreement. A big question going forward will be how Apple complies with China's AI policies, said Nicole Peng, a senior vice president at Canalys. Stringent Chinese restrictions may hamper the company's initial attempts to build AI into its products, she said.

The Information reported at the start of this month Apple has formally partnered with Baidu to launch Apple Intelligence in China in 2025, but two companies have clashed over use of iPhone user data to improve models. It also said the companies are grappling with issues like the large language model (LLM)'s understanding of prompts and accuracy in response to common scenarios as Baidu is working to customize its AI models to handle iPhone user requests.

The report suggested the hurdles could hurt Apple's iPhone sales in China, the world's largest smartphone market and its second biggest market outside its homeland U.S.

Apple introduced on September 9 the new iPhone 16 lineup, built from the ground up for Apple Intelligence. The latest iPhone series feature the faster, more efficient A18 and A18 Pro chips, making these the most advanced and capable iPhone models ever.The AI features are deemed as a major selling point of iPhone 16.

The first set of Apple Intelligence features for users of iPhone and other Apple devices was available first for US English in October. Last week, Apple rolled out significant updates to Apple Intelligence including long-anticipated feature: ChatGPT integration with Siri and Apple Intelligence's writing tools. Users now have the option to access ChatGPT's knowledge within Writing Tools and Siri, allowing them to benefit from its image- and document-understanding capabilities without needing to jump between tools. However, it's still unclear when Apple Intelligence can be available for users in China.

"We are working hard to push it forward. There is a very strict regulatory process we need to go through, and we hope to bring it to Chinese consumers as soon as possible," Apple CEO Tim Cook responded to a question about when Apple will launch Apple Intelligence in China during his visit to the country in October.