Apple held preliminary talks with Baidu about using the Chinese company's artificial intelligence technology for Apple devices in China, according to a Wall Street Journal report. U.S.-listed Baidu stock edged higher in Friday trades.
Apple has been seeking a generative AI partner in China because the Asian nation "requires such models to be vetted by its cyberspace regulator before being launched to the public," the Wall Street Journal reported citing unnamed sources.
Baidu declined to comment while Apple did not respond to an emailed request for comment Friday.
On the stock market today, Baidu stock gained a half-percent to close at 102.18. Shares were up as much a 5% premarket. Meanwhile, Apple stock also gained a half-percentage point, closing at 172.28.
Apple Reportedly In Talks With Google In The U.S.
The Wall Street Journal report comes the same week as Bloomberg reported that Apple is in talks with Google-parent Alphabet to license its Gemini artificial intelligence training model for use in iPhones. Bloomberg's report also said Apple has held talks with OpenAI, the creator of ChatGPT.
Google is the operator of the world's largest search engine. Baidu is the dominant online search platform in China.
Last year, Baidu launched a ChatGPT-like artificial intelligence chatbot called Ernie. The company has described its AI large language model as comparable to global market leaders such as OpenAI.
Baidu Stock Down In 2024
Baidu stock has struggled this year amid concerns about the broader Chinese economy. Shares are down 12% on the year entering trading Friday and have lost 31.5% in the past 12 months.
According to IBD Stock Checkup, U.S.-listed shares of Baidu have a weak IBD Composite Rating of 56 out of 99. IBD's Composite Rating combines fundamental and technical metrics for an overview of a stock's strengths. The best-rated growth stocks have a Composite Rating of 90 or better.
Further, Baidu stock has a Relative Strength rating of 12 out of a best possible 99. The score indicates Baidu's stock price growth is outperforming just 12% of stocks over the past 52 weeks.
