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CHINA-BEIJING-APPLE CEO-SCIENCE AND TECHNOLOGY BACKYARDS-VISIT (CN)
Apple CEO Tim Cook and COO Jeff Williams talk with a university student in China (Cai Yang/Getty Images)
Apples of my Eye

Apple is playing the AI field in China, too, working with both Baidu and Alibaba

The iPhone maker is in a situationship with both Baidu and Alibaba.

Rani Molla

Apple doesn’t want to get tied down when it comes to AI. The Information reports that the iPhone maker is continuing to work with search engine and AI chatbot company Baidu to develop the AI functionality on its phones in China. That’s after news it’s also working with Chinese e-commerce and AI company Alibaba to do the same thing.

The Baidu partnership involves “developing an AI-powered search feature that can handle images and text and upgrades to the Chinese version of Siri voice assistant,” The Information said, citing two people with direct knowledge.

Meanwhile, Alibaba is still talking up its relationship with Apple.

“Apple has been very selective. They talked to a number of companies in China, and in the end they choose to do business with us,” Alibaba Chairman Joseph Tsai told an interviewer at a conference in Dubai today. “They want to use our AI to power their phones.”

Apple has had to pair with local companies in order to sate Chinese regulation and offer its full suite of AI features in the country.

For Apple’s part, it’s also been playing the field in the US, offloading some of its Apple Intelligence capabilities to OpenAI’s ChatGPT rather than keeping its AI exclusively in-house. Apple has also discussed partnering with other AI companies like Google. The strategy has helped Apple avoid a lot of the capital expenditure outlays of its biggest tech competitors. It also helped Apple avoid the AI tech company rout last month by ultimately not making it much of an AI tech company.

For what it’s worth, shares of Apple, Alibaba, and Baidu are up today — but Baidu is up the most.

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Amazon closes at all-time high

Fresh off strong earnings Thursday, Amazon saw its stock price end the week at a record closing high of $244.22.

The stock is up 10% so far this year.

The e-commerce and cloud giant beat analysts’ revenue and earnings, and its massive gain was responsible for more than all of the positive return delivered by the SPDR S&P 500 ETF on Friday.

tech
Rani Molla

Google uses an AI-generated ad to sell AI search

Google is using AI video to tell consumers about its AI search tools, with a Veo 3-generated advertisement that will begin airing on TV today. In it, a cartoonish turkey uses Google’s AI Mode to plan a vacation from its farm before it’s eaten for Thanksgiving.

Like other AI ad campaigns that have opted to depict yetis or famous artworks rather than humans, Google chose a turkey as its protagonist to avoid the uncanny valley pitfall that happens when AI is used to generate human likenesses.

Google’s in-house marketing group, Google Creative Lab, developed the idea for the ad — not Google’s AI — but chose not to prominently label the ad as AI, telling The Wall Street Journal that consumers don’t actually care how the ad was made.

Google’s in-house marketing group, Google Creative Lab, developed the idea for the ad — not Google’s AI — but chose not to prominently label the ad as AI, telling The Wall Street Journal that consumers don’t actually care how the ad was made.

tech
Rani Molla

Amazon, Alphabet, Meta, and Microsoft combined spent nearly $100 billion on capex last quarter

The numbers are in and tech giants Amazon, Alphabet, Meta, and Microsoft spent a whopping $97 billion last quarter on purchases of property and equipment. That’s nearly double what it was a year earlier as AI infrastructure costs continue to balloon and show no sign of stopping. Amazon, which reported earnings and capital expenditure spending that beat analysts’ expectations yesterday, continued to lead the pack, spending more than $35 billion on capex in the quarter that ended in September.

Note that the data we’re using here is from FactSet, which strips out finance leases when calculating capital expenditures. If those expenses were included the total would be well over $100 billion last quarter.

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