Apple is reportedly in advanced discussions with ByteDance and Tencent to integrate their artificial intelligence (AI) models into its devices sold in China. This move comes as Apple seeks to enhance its AI capabilities, particularly for the iPhone, following the launch of Apple Intelligence in October 2024. ByteDance has notably increased its capital expenditure for 2025 to 160 billion yuan (approximately US$22.0 billion), which is double its 2024 spending of 80 billion yuan, as it builds out its AI data center capacity. These partnerships are seen as a strategic effort by Apple to navigate regulatory challenges and maintain its competitive edge in the Chinese smartphone market.