Apple has reportedly partnered with Alibaba to bring AI-powered features to iPhones in China, according to The Information. This comes after Apple apparently dropped Baidu as its initial AI partner and rejected models from other Chinese firms, including DeepSeek. The partnership is a key step in Apple’s efforts to introduce generative AI to its Chinese users amid declining iPhone sales in the region.
Key Points:
- Apple and Alibaba have submitted co-developed AI features for Chinese regulatory approval.
- Apple initially worked with Baidu but found its models insufficient.
- Apple tested AI models from Tencent, ByteDance, and DeepSeek but did not proceed with them.
Apple Intelligence, introduced last year in the U.S. and other global markets, enhances iPhone features such as photo search, notifications, and text rewriting using a mix of Apple’s own models and OpenAI’s ChatGPT. However, due to strict Chinese regulations, Apple must partner with domestic companies to deploy AI in the country.
Apple initially worked with Baidu but was reportedly dissatisfied with its AI models. It then explored partnerships with other Chinese firms, including Tencent, ByteDance, and DeepSeek, before ultimately selecting Alibaba. According to The Information, Apple found DeepSeek’s models lacked the necessary scale and infrastructure to support its AI ambitions.
Alibaba’s AI models, developed through its cloud computing division, are trained on vast datasets of consumer behavior, giving them an advantage in understanding Chinese users’ needs. However, due to China’s strict data privacy laws, Alibaba will not share its proprietary consumer data with Apple.
The partnership comes at a crucial time for Apple, as iPhone sales in China have declined amid growing competition from local brands like Huawei and Xiaomi. In the last quarter alone, Apple’s China revenue fell 11%. CEO Tim Cook has acknowledged that the absence of Apple Intelligence in China has contributed to this decline, as competitors have already integrated AI-driven features into their devices.
Apple plans to launch a version of Apple Intelligence in simplified Chinese outside of mainland China by April. However, the release in China remains subject to government approval, which could delay its rollout in Apple’s second-largest market.