From InvestorPlace: 2024-07-10 10:01:44

Apple is seeking a Chinese AI dance partner for its upcoming iPhone launch, aiming for safe, private, and useful intelligence. The company has chosen to integrate ChatGPT with OpenAI, but is also looking to partner with a Chinese AI firm to bring a local language model to Chinese users.

Baidu could be an ideal partner for Apple, as its Ernie bot complies with Chinese regulations. Offshoring regulatory risks, a deal with Baidu could benefit both companies, especially with Baidu’s low P/E ratio and successful AI model with 300 million users.

Alibaba, despite a steep stock decline, offers a strong AI candidate with Tongyi Qianwen. With AI integration experience and impressive cloud expertise, a partnership with Apple could drive stock growth. Alibaba’s commitment to AI and previous investments in AI startups position it as a potential powerhouse in the AI market.

Tencent Holdings, another major player in the Chinese AI space, presents Xingmai, an intelligent network that may set it apart. With a focus on video gaming and engaging mobile gaming titles, Tencent’s stock could be a strong investment for the long term, especially considering its trailing P/E ratio of 29.4x.



Read more at InvestorPlace: Apple’s AI Dilemma: 3 Chinese Stocks That Could Fill the Gap