Apple Inc has discussed using Baidu Inc’s AI in iPhones and other devices within China, the Wall Street Journal reported, a potentially big win for the domestic search leader.

Apple has held initial talks about using Baidu’s generative AI technology in its gadgets, the Journal cited people familiar with the matter as saying. The US company sought a local partner because regulators there must vet all AI models, the newspaper added. Baidu’s shares climbed 5% in pre-market trading in New York.

Baidu is considered among the leaders in AI in China, where startups and tech giants are investing billions on developing their own answers to ChatGPT. OpenAI’s seminal creation and other foreign services aren’t available in China’s tightly regulated online sphere.

  - Bloomberg