In a recent development, Apple has reportedly engaged in preliminary discussions with Baidu, the dominant online search platform in China, regarding the incorporation of Baidu's artificial intelligence (AI) technology into Apple devices within the country. The talks, aimed at utilizing Baidu's AI capabilities for Apple products, were disclosed by unnamed sources cited in a Wall Street Journal report.

Apple's pursuit of an AI partner in China stems from the nation's requirement that such AI models undergo vetting by the cyberspace regulator before being launched publicly. Seeking compliance with these regulations, Apple has turned to Baidu, a renowned provider of AI solutions, for potential collaboration in the Chinese market.

Neither Apple nor Baidu has commented on the matter in response to emailed requests for a statement.

On Friday, Baidu's U.S.-listed stock experienced a modest increase of 1.1%, trading at $102.89. In premarket trading, the stock had surged by as much as 5%. Conversely, Apple's stock observed a marginal rise of less than 1% and is currently trading at $172.64.

This news follows Apple's reported discussions with Google-parent Alphabet to license its Gemini AI training model for integration into iPhones. Additionally, Apple has explored potential partnerships with OpenAI, the creator of ChatGPT, as revealed by a recent Bloomberg report. These discussions emphasize Apple's commitment to enhancing its AI capabilities and leveraging the expertise of leading AI providers in the industry.

Baidu, recognizing the significance of AI, launched its own AI chatbot, Ernie, last year, which draws parallels to OpenAI's ChatGPT. The company positions its AI language model on par with global market leaders. Baidu stock, however, has faced challenges this year due to concerns surrounding the broader Chinese economy. It has experienced a decline of 12% year-to-date and a substantial 31.5% drop over the past 12 months.

According to IBD Stock Checkup, Baidu's U.S.-listed shares currently hold a weak IBD Composite Rating of 56 out of 99, which combines fundamental and technical metrics to assess a stock's strengths. Additionally, Baidu's Relative Strength rating stands at 12 out of a possible 99, indicating that its stock price growth has outperformed only 12% of other stocks over the past 52 weeks.

As the talks between Apple and Baidu progress, investors and industry watchers eagerly await further developments that may shape the future of AI integration in Apple devices within the Chinese market.