According to reports, Apple is in talks with Tencent and ByteDance to integrate AI models into iPhones sold in mainland China. This development spells trouble for Baidu, which has been working closely with Apple. With the partnership seemingly at risk, sources indicate that Baidu may reassess its strategy to regain a potentially deal worth over $10 billion.
Apple's decision to consider collaboration with rival tech giants comes after Baidu expressed frustration over disagreements on technical and privacy issues. Despite this, Baidu remains convinced that making concessions to Apple is still worthwhile, especially with the prospect of commanding a bigger share of the global market.
Baidu's efforts to seize a larger market share have drawn critics who question the company's ability to strike a balance between user data protection and commercial viability. Detractors argue that following through on Apple's demands would embolden rival companies to maintain lenient data protection policies and outrun competition on market share.
For now, Baidu prefers to err on the side of flexibility rather than jeopardize the potential collaboration with Apple. In doing so, the company has been pushing for a definition of cooperation that aligns both parties' interests without eroding core product values.