Apple is reportedly in talks with Chinese technology firms Tencent and the privately-held ByteDance about using the companies' AI models for iPhones in China. Tencent stock gained following the news.
Discussions between the companies are in a "very early stage," Reuters reported, citing unnamed sources. Apple has already started integrating AI features into iPhones in the U.S. using OpenAI's ChatGPT models. But with ChatGPT not available in China, Apple reportedly needs local partners to power AI features for its phones in the world's second largest economy.
Apple also held talks with China search giant Baidu during the spring, according to multiple media reports at the time. But The Information reported earlier this month that efforts to integrate Baidu's AI models into iPhones had "hit snags."
On the stock market today, Tencent stock is up more than 3% at 53.17. Tencent is Hong Kong listed and trades over the counter in the U.S.
U.S.-listed Baidu stock, meanwhile, was down more than 2% in recent action, breaking below its 21-day moving average. Apple rose more than 1%.
Tencent Stock Up 41% This Year
Tencent is the owner of the massively popular WeChat super-app in China and the company is also a leading global games developer.
The company's stock broke out of a long flat base in late September, as Tencent rallied along with other China stocks on bullishness about government stimulus. Tencent has eased back from highs in early October but the stock remains up 41% on the year. That's ahead of other prominent China tech stocks. Baidu is down 27% this year, while Alibaba is up 10% year-to-date.
