Apple Teams Up with Alibaba to Bring AI Features to iPhones in China

🔹 Apple and Alibaba Join Forces for AI Integration

credit. apple.com
Apple has officially partnered with Alibaba to bring advanced AI features to iPhones in China, according to Alibaba’s chairman, Joe Tsai. This announcement resolves months of speculation about Apple’s strategy in the Chinese market. Speaking at the World Government Summit in Dubai, Tsai revealed, “They talked to a number of companies in China, and in the end, they chose to do business with us. They want to use our AI to power their phones. We feel extremely honored to work with a great company like Apple.”
🔹 Alibaba Shares Surge 📈
Following the announcement, Alibaba’s stock rose by as much as 8.6%, fueled by a report from The Information that Apple is collaborating with the e-commerce giant to bring AI capabilities to its devices in China. Due to local regulations, Apple has been unable to fully roll out its AI features in the region without partnering with a Chinese company.
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🔹 Apple’s AI Features Powered by Local Partner 🧠
Currently, Apple’s devices outside China use a combination of proprietary Apple Intelligence and OpenAI’s ChatGPT for their AI features. The report mentions that both Apple and Alibaba have already submitted the necessary documentation to Chinese authorities for approval.
🔹 A Shift in AI Strategy 🧑💻
Earlier this week, it was reported that Apple had decided not to pursue a partnership with Chinese AI company DeepSeek, which gained attention for its cost-effective development compared to competitors. Apple had also considered Baidu as its primary AI partner last year, but its AI models did not meet Apple’s standards.
🔹 A Key Move for Apple in China 🇨🇳
This partnership is especially significant as Apple faced a major setback in China in 2024, losing its position as the top smartphone vendor in the country. Apple’s annual shipments in China dropped by 17%, according to Canalys, providing an opening for local manufacturer Vivo to take the lead.
source : MacRumors.com