Apple is reportedly planning to integrate generative AI made by Baidu Inc., the Chinese tech and AI company, into upcoming iPhones and Apple products in China, as per a report by Wall Street Journal. This discussion between the tech giants signals a potentially significant development for the Chinese AI landscape.

According to the report, the decision to utilise Baidu's AI technology in Apple products comes amidst regulatory requirements in China mandating thorough vetting of all AI models utilised within the country.

Experts believe that the deployment of Baidu's generative AI technology in Apple's gadgets could offer a multitude of benefits, ranging from enhancing user experience to bolstering the performance of Apple devices in the Chinese market. 

The news of potential collaboration has already sparked investor enthusiasm, with U.S.-listed shares of Baidu experiencing a notable 5% surge in premarket trading.