Apple IncAAPL sparks talks with Baidu Inc BIDU to incorporate advanced AI into Apple devices in China, a strategic move to fortify its AI capabilities.

Aligning with Chinese regulations requiring AI scrutiny, Apple looks to Baidu for local AI models, as reported by the Wall Street Journal.

In addition to Baidu, Apple explores collaborations with global AI giants like Alphabet Inc’s Google and OpenAI.

CEO Tim Cook’s focus on China is evident with Apple’s flagship store launch in Shanghai, highlighting China’s pivotal role in Apple’s global strategy.

Amid geopolitical tensions, Apple diversifies its supply chain beyond China, addressing challenges in the wake of U.S.-China trade dynamics.

As Huawei gains market share in China, Apple faces hurdles with iPhone sales while U.S. sanctions disquiet Nvidia Corp, impacting Apple’s AI chip supply.

Collaboration with Baidu could further strain Nvidia, already losing clientele like Huawei, signaling shifts in the AI chip industry.

Price Action: BIDU shares dip by 0.18% to $101.50 as of the latest check Friday.

Disclaimer: This content, partially utilizing AI tools, was reviewed and published by the Benzinga editorial team.

Photo courtesy: Apple