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In his second visit to China this year, Apple CEO Tim Cook met with Beijing officials and local partners as the company faces challenges with its launch of Apple intelligence and increased competition in the market. 

China’s Minister of Industry and Information Technology met with the CEO in Beijing on Wednesday to discuss Apple’s development in China, network data security and cloud services, according to a ministry statement

During the conversation, the ministry said Cook signaled Apple’s commitment to the country, promising to increase investment in the market and to grow alongside Chinese companies. He also met with the leaders of several local Chinese firms in the same day, including China Mobile Chairman Yang Jie, to discuss digital content and 5G product cooperation, according to local reports

Ivan Lam, senior research analyst for Counterpoint Research, said the timing of the trip is significant, coming as local competitors are introducing updated operating systems that integrate AI and new flagship products.

“This trip seems notable now as the company could be looking to shore up collaboration with local players to launch Apple Intelligence in China,” Lam said. 

Le Xuan Chiew, Canalys’ analyst focusing on Apple strategy research, said the roll out of Apple Intelligence in China was likely the main motivation for Cook’s trip, as well as to “bolster the importance of China to Apple’s global strategy.”

The timeline for the introduction of Apple Intelligence in China remains “uncertain” and will depend largely on regulatory approvals, which could explain some of the messaging focus of his China trip, Chiew said.

This could be a problem for the company as the lack of Apple Intelligence on Chinese devices is expected to weaken the motivation for users to upgrade to the iPhone 16, he added. 

Apple Intelligence is the company’s artificial intelligence play, which aims to bring AI across its devices, with features such as an improved voice assistant and tools that automatically organize emails and transcribe and summarize audio recordings.

While the company has said Apple Intelligence will roll out in U.S. English this fall, it has been more quiet on plans for the product offering in China.

Cook often travels to China — Apple’s largest overseas market — to launch products and factories, visit suppliers and meet with local officials. During his visit in March, he had been in Shanghai for the opening of a new retail store. He also visited Chengdu this time last year as Apple faced lackluster demand in the world’s second largest economy.

During his current trip, Cook was photographed visiting the offices of the Chinese social media giant Weibo and meeting with its CEO in a post on his personal Weibo account. Weibo is one of the local app developers that has launched applications for Apple’s Vision Pro mixed reality headset, which was released in the Chinese market in June. 

Apple successfully launched the iPhone 16, its latest model in the series, in China this September, and the new phones got off to a strong start. Sales were up 20% in the first three weeks since launch, compared to the 2023 model, according to data from research firm Counterpoint.

But despite the successful product launch, overall iPhone unit sales, including older models, were down 2% year-over-year in China during the three-week period. 

Apple has faced dwindling market share in China amid increased competition with local players and an increasing preference among Chinese consumers to pick domestically made goods.

The company saw its market share in the second quarter fall 5.7% year-over-year, according to Counterpoint

After it made a splash with a surprise 5G model last year, Huawei, one of Apple’s main competitors in China, launched competing handsets the same day the iPhone 16 went on sale. 

“Huawei’s recent resurgence in the high-end market, driven by its in-house chips and HarmonyOS ecosystem, has intensified the competitive landscape, making it harder for Apple to maintain its leadership position,” said Canalys’s Chiew. 

Apple’s Vision Pro could also face more competition in the market as Huawei is reportedly gearing up to launch its own competing headset as soon as next week.

— CNBC’s Arjun Kharpal contributed to this report

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OpenAI investor Reid Hoffman spars with AI czar Sacks, calls Anthropic ‘one of the good guys’

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OpenAI investor Reid Hoffman spars with AI czar Sacks, calls Anthropic 'one of the good guys'

Reid Hoffman, Partner at Greylock and co-founder LinkedIn, speaks during the WSJ Tech Live conference hosted by the Wall Street Journal at the Montage Laguna Beach in Laguna Beach, California, on October 21, 2024.

Frederic J. Brown | Afp | Getty Images

Two of the main members of the PayPal mafia are sparring again — this time over artificial intelligence.

Billionaire tech investor and LinkedIn co-founder Reid Hoffman on Monday called Anthropic “one of the good guys” after the AI startup was criticized last week by David Sacks, the venture capitalist serving as President Donald Trump’s AI and crypto czar.

“Anthropic, along with some others (incl Microsoft, Google, and OpenAI) are trying to deploy AI the right way, thoughtfully, safely, and enormously beneficial for society,” Hoffman wrote on X. That’s why I am intensely rooting for their success.”

Hoffman has served on Microsoft’s board since 2017, shortly after selling LinkedIn to the software giant. Microsoft is a key OpenAI investor and partner. Hoffman was also an early investor in OpenAI, Anthropic’s larger rival, and remains a shareholder. He revealed on Monday that Greylock, where he’s a partner, has invested in Anthropic.

Greylock and Anthropic didn’t respond to requests for comment.

In a series of posts, Hoffman said he tries to avoid commenting directly about companies like OpenAI and Anthropic, but that “in all industries, especially in AI, it’s important to back the good guys.”

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Hoffman and Sacks were both early employees at PayPal, joining in 1999 and assuming major roles at the payments company. Along with Peter Thiel, Elon Musk, Max Levchin and a group of other high-profile techies, they were part of what became known as the PayPal mafia because of the number of successful companies they went on to build.

But Hoffman and Sacks have been public antagonists recently, due mostly to their political differences. Hoffman is a major Democratic donor, contributing millions of dollars to Kamala Harris’ unsuccessful presidential bid.

Sacks emerged as a vocal Trump supporter ahead of the 2024 election before joining the administration. He hosted a fundraiser for Trump at his San Francisco mansion.

Politics of AI

David Sacks, U.S. President Donald Trump’s “AI and Crypto Czar”, speaks to President Trump as he signs a series of executive orders in the Oval Office of the White House on Jan. 23, 2025 in Washington, DC.

Anna Moneymaker | Getty Images

Sacks criticized the essay and, in a post on X, accused Anthropic of “running a sophisticated regulatory capture strategy based on fear-mongering.” He said the company is “principally responsible for the state regulatory frenzy that is damaging the startup ecosystem.”

Anthropic has repeatedly pushed back against efforts by the federal government to hinder state-level regulation of AI, including a Trump-backed provision that would have blocked those rules for 10 years.

After Hoffman shared his thoughts about Anthropic on Monday, Sacks and Musk, who owns a competing AI company called xAI and was also a major early figure in the second Trump administration, were quick to respond.

“The leading funder of lawfare and dirty tricks against President Trump wants you to know that ‘Anthropic is one of the good guys,'” Sacks wrote in response to Hoffman on Monday. “Thanks for clarifying that. All we needed to know.”

“Indeed,” Musk said in a reply.

The chirping went back and forth on Monday.

“Shows you didn’t read the post (not shocked),” Hoffman wrote. “When you are ready to have a professional conversation about AI’s impact on America, I’m here to chat.”

Jason Calacanis, who co-hosts the All-In podcast, along with Sacks and two other tech friends, wrote in response to Hoffman that he should “come on the pod,” inviting him this week. Hoffman previously joined for an episode at the end of August, roughly two months before the presidential election.

Hoffman wrote that he is “open to coming back on” but that “this week is packed.”

— CNBC’s MacKenzie Sigalos contributed to this report

WATCH: Anthropic’s Mike Krieger on new model release and the race to build real-world AI agents

Anthropic’s Mike Krieger on new model release and the race to build real-world AI agents

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OpenAI cracks down on Sora 2 deepfakes after pressure from Bryan Cranston, SAG-AFTRA

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OpenAI cracks down on Sora 2 deepfakes after pressure from Bryan Cranston, SAG-AFTRA

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OpenAI announced on Monday in a joint statement that it will be working with Bryan Cranston, SAG-AFTRA, and other actor unions to protect against deepfakes on its artificial intelligence video creation app Sora.

The “Breaking Bad” and “Malcolm in the Middle” actor expressed concern after unauthorized AI-generated clips using his voice and likeness appeared on the app following the Sora 2 launch at the end of September, the Screen Actors Guild-American Federation of Television and Radio Artists said in a post on X.

“I am grateful to OpenAI for its policy and for improving its guardrails, and hope that they and all of the companies involved in this work, respect our personal and professional right to manage replication of our voice and likeness,” Cranston said in a statement.

Along with SAG-AFTRA, OpenAI said it will collaborate with United Talent Agency, which represents Cranston, the Association of Talent Agents and Creative Artists Agency to strengthen guardrails around unapproved AI generations.

The CAA and UTA previously slammed OpenAI for its usage of copyrighted materials, calling Sora a risk to their clients and intellectual property.

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OpenAI had to block videos of Martin Luther King Jr. on Sora last week at the request of King’s estate after users created “disrespectful depictions” of the civil rights leader.

Zelda Williams, the daughter for late comedian Robin Williams, asked people to stop sending her AI-generated videos of her father shortly after the Sora 2 release.

OpenAI’s approach to copyright restrictions and other issues related to likeness have evolved since the Sora 2 launch Sept. 30.

On Oct. 3, CEO Sam Altman updated Sora’s opt-out policy, which previously allowed the use of IP unless studios specifically requested that their material not be used, to allow rightsholders “more granular control over generation of characters.”

At launch, Sora required an opt-in for the use of an individual’s voice and likeness, though OpenAI said that it is now also committing to “responding expeditiously to any complaints it may receive.”

The company reiterated its support of the NO FAKES Act, a federal bill passed designed to protect against unauthorized AI-generated replicas of people’s voice or visual likeness.

“OpenAI is deeply committed to protecting performers from the misappropriation of their voice and likeness,” Altman said in a statement. “We were an early supporter of the NO FAKES Act when it was introduced last year, and will always stand behind the rights of performers.”

We tested OpenAI’s Sora 2 AI-video app to find out why Hollywood is worried

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Jim Cramer: Patient Apple bulls are vindicated, and the stock is just getting started

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Jim Cramer: Patient Apple bulls are vindicated, and the stock is just getting started

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