Apple and Baidu are working to add AI features to iPhones sold in China, but are facing hurdles that could hurt the tech giant's phone sales in the country, The Information reported on Wednesday.

Apple and Baidu fare acing challenges in collaborating on AI features for iPhones in China, with clashes over user data and model performance.

Apple is struggling to work with Chinese tech company Baidu to bring Apple Intelligence to China next year, The Information reports. While it

Apple (NASDAQ:AAPL) is using the custom artificial intelligence chips from Amazon's (NASDAQ:AMZN) cloud computing unit and is evaluating its latest AI chip for pre-training models, CNBC reported, citing an executive that touted Amazon Web Services in a surprise endorsement.

Amazon.com's cloud unit on Tuesday showed new data center servers packed with its own AI chips that will challenge Nvidia , with Apple coming aboard as a customer to use them.