The road to rolling out Apple Intelligence to iPhone users in China has been met with more than a few potholes because the regulation hurdles mean that partnering with a local giant will be imperative when bringing in generative AI features to the masses. Apple was previously reported to be involved with Tencent and ByteDance and use their AI models to tap into the Chinese market. According to the latest report, the Cupertino giant might have a higher probability of teaming up with ByteDance because the latter has increased its 2025 capex to double from what it was this year.
In total, ByteDance is estimated to invest a whopping $22 billion next year in AI data centers, which will heavily interest Apple
With the demand for generative AI spiking, additional server capacity will be sorely needed to meet these requirements. As reported by the Economic News Daily, ByteDance has immediately pounced on the opportunity to fulfill this demand by doubling its 2025 capex to a whopping $22 billion, or 160 billion yuan. The investment will be utilized to buy up AI data center real estate, with the additional capacity to handle billions of daily queries.
Looking at how serious ByteDance is when it comes to generative AI, Apple would likely want to ink a partnership with the entity as quickly as possible. This year, ByteDance’s capex was 80 billion yuan, making it nearly equivalent to the funds injected by three Chinese internet giants, Baidu, Alibaba, and Tencent. Compared to OpenAI, ByteDance’s generative AI model ‘Doubao’ ranks second to the company behind ChatGPT in terms of global users, making it the obvious choice for Apple when tapping into China.
As the California-based giant reaches a $4 trillion market capitalization, analysts have stated that Apple Intelligence’s capabilities and reach are currently limited, but when expanded, it can result in an iPhone supercycle. Given that China is the largest smartphone market by volume, bringing Apple Intelligence to the region is of paramount importance to the company, meaning that it will likely attempt to expedite a deal with ByteDance.
News Source: Economic News Daily
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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