Photo/Gernnarated by Ernie Bot 

In the race to integrate generative AI, Apple, initially lagging behind, is now accelerating its entry into the field. On March 25th, according to the Chinastarmarket.com, citing insiders, Baidu is set to provide AI capabilities for Apple’s upcoming iPhone 16, Mac systems, and iOS 18.

This move comes as Apple faces challenges in resolving regulatory issues, while its international devices will continue to feature AI functionalities powered by Apple’s own models.

NBD tried to confirm the details with Baidu, but no response was received as of press time.

AIGC has initiated a competition in the AI smartphone sector. Major manufacturers like Samsung, Huawei, Honor, OPPO, vivo, Xiaomi, and Meizu have launched their own large-scale AI models for mobile devices, either through partnerships or in-house development. OPPO, for instance, has expressed an open AI strategy, focusing on collaborating with partners to democratize AI experiences for users.

China-version iPhone 16 to Collaborate with Baidu

The China-specific iPhone 16 is rumored to collaborate with Baidu. Apple reportedly considered partnerships with Alibaba and another domestic AI model company before finalizing Baidu for the service, likely to be billed through an API interface.

Renowned digital economist Liu Xingliang analyzed the partnership to NBD that Apple’s choice of Baidu is based on compliance needs, technical strength, market strategy, and policy orientation. This collaboration not only helps Apple adhere to Chinese laws and regulations, ensuring product and service compliance, but also leverages Baidu’s technical prowess to enhance the AI experience for Chinese users, potentially boosting Apple’s growth in the Chinese market.

Liu emphasized Baidu’s Ernie Bot, a leading large-scale AI model, boasts robust language understanding and generation capabilities, offering high-quality AI services. Apple’s partnership with Baidu could better align its offerings with Chinese market preferences, enhancing its competitive edge and appeal in China.

Pan Helin, a member of the Ministry of Industry and Information Technology’s Economic Committee, also commented that Ernie Bot has passed security assessments and is compliant within China. Domestic AI models are regulated, with publicly sold products undergoing security evaluations as outlined in the “Basic Requirements for the Security of Generative AI Services,” a prerequisite for operational licensing. From Apple’s perspective, choosing a compliant and secure AI model aligns with domestic regulations.

Previously, Baidu revealed collaborations with leading companies like Samsung, Honor, and Autohome in 2023. Samsung’s latest flagship, the Galaxy S24 series, integrates multiple capabilities of Ernie Bot.

AI Smartphone, A Battle Field of Smartphone Makers

In what’s been dubbed the “Year of the AI Smartphone,” AI functionalities have become a standard feature. IDC forecasts that global shipments of next-generation AI smartphones will reach 170 million units in 2024, accounting for 15% of total smartphone shipments. The market share of AI smartphones in China is expected to grow rapidly, exceeding 50% by 2027.

Analyst Ming-Chi Kuo recently stated on social media that, thanks to generative AI features, Samsung has increased its shipment forecast for the Galaxy S24 series by 5-10% for the year. In contrast, Apple has reduced its shipment estimate for the iPhone 15 in the first half of the year. He also predicted that shipments of the iPhone 15 and the new iPhone 16 series would decline by 10-15% year-over-year in the first and second halves of the year, respectively. If Apple fails to launch generative AI services that exceed market expectations this year, Nvidia’s market value may surpass Apple’s.

Currently, among mainstream smartphone manufacturers, Apple is nearly the only one yet to officially release a large-scale model application. When asked about AI progress on the iPhone, CEO Tim Cook, during a recent media interview in Shanghai, responded that AI is already integrated into various aspects of Apple products, such as fall detection on the Apple Watch and predictive text input on the iPhone. He reiterated that “Apple’s generative AI will have news announced later this year.”

Beyond Apple, AI-powered smartphones are gradually becoming popular. Brands like Samsung, Huawei, Honor, OPPO, vivo, Xiaomi, and Meizu have already launched their own mobile-side large-scale AI models, either through partnerships or proprietary development.

In late February, OPPO’s Chief Product Officer Liu Zuohu announced at an AI strategy conference that the company would continue to invest in cloud computing power. OPPO plans to deploy Titan, Turbo, and Tiny models at its AI Binhai Bay Data Center to cater to various application scenarios, achieving a synergy between device and cloud deployments. 

In contrast to OPPO’s approach of “independent training” and data center construction, Honor CEO Zhao Ming clarified in a media interview that Honor would not develop a general cloud-based large-scale model, focusing instead on building device-side AI capabilities. “ChatGPT, AIGC, and Sora are not currently core directions for Honor. Even if we double our 11.5% R&D budget, our core strategy and development logic will remain different. For general large-scale models, we will choose to collaborate with partners like Baidu, Tencent, Alibaba, and others in the industry.”

In January, Zhao announced the “Hundred Models Ecology Plan,” with Baidu Intelligent Cloud becoming a strategic partner for Honor’s large-scale model ecosystem. Honor aims to provide access to “hundred large models,” allowing cloud-side general and industry-specific large-scale models to integrate into Honor’s MagicOS through a shelf-like approach. The device-side platform-level AI model will serve as the central controller, understanding user intentions and orchestrating tasks.

As Apple’s iPhone 16 and other hardware collaborate domestically with third-party large-scale model manufacturers like Baidu, creating differentiation in device-side applications from other manufacturers is also worth attention.

Regarding the international expansion of Chinese AI smartphones, OPPO shared that its AI strategy is open, and the company is committed to popularizing AI experiences with partners. Due to the GMS service framework in overseas markets, OPPO has chosen to collaborate with Google for some AI capabilities. Additionally, OPPO has formed a deep partnership with Microsoft for multi-device AI collaboration, but for certain differentiated AI features (such as fun AI capabilities like AI photo booths/AI removal), OPPO uses its own Andes model abroad.

Honor believes in a collaborative and open global ecosystem. Committed to using AI to reconstruct operating systems and create a large AI platform, Honor provides computational power interfaces, embracing excellent open-source general and professional domain models worldwide. Through deep cooperation with international partners, Honor offers services that “understand you better the more you use them.”

For instance, as an exploration of future applications, Honor introduced the open-source LlaMA 2 side AI in the Magic6 Pro, enabling offline question-answering, text creation, and reading comprehension. Honor also insists on keeping personal data within devices, safeguarding consumer privacy through a combination of device and cloud approaches.