Baidu Inc (BIDU  ) has formed a partnership with Lenovo Group Ltd (LNVGF  ) to integrate its generative AI technology, Ernie large language model (LLM), into Lenovo's smartphones.

This collaboration is part of Baidu's ongoing effort to find practical uses for its AI models, following similar partnerships with Samsung Electronics Co (SSNLF  ) and Honor.

Lenovo, which also owns Motorola Solutions, Inc (MSI  ), already features Ernie in the browser and app store apps on its PCs and tablets, Reuters reports.

The move reflects the growing trend of incorporating generative AI features, like chatbots and real-time translation, into smartphones-a trend that gained momentum with the launch of ChatGPT in late 2022.

While Alphabet Inc (GOOG  ) (GOOGL  ) Google leads in AI smartphone technology with its Pixel phones, and Apple Inc (AAPL  ) is reportedly incorporating generative AI into the iPhone, China presents a unique market opportunity. U.S.-based AI services, including those from OpenAI and Google, are unavailable in China, making room for local companies.

Baidu and its competitors Alibaba Group Holding Limited (BABA  ) and Tencent Holding Ltd (TCEHY  ) are capitalizing on this gap, offering over 200 AI models in China.

According to Counterpoint analyst Ivan Lam, this strategic move is crucial for promoting smartphone AI-powered features, which may become essential in the long run. China's leading phone brands like Vivo, Xiaomi Corp (XIACF  ), and Huawei are also developing their on-device AI models, indicating a broader shift towards AI integration in the smartphone industry.

Previous reports indicated that Baidu founder Robin Li urged Chinese entrepreneurs and officials to stop competing in developing LLMs and instead focus on creating applications for existing models like Baidu's "Ernie."

Price Action: BIDU shares traded higher by 1.24% at $104.45 on the last check Friday.