Apple Intelligence wins China approval with Alibaba and Baidu partnerships worth billions

Apple Intelligence approved for launch in China with Alibaba and Baidu

Apple Intelligence, the iPhone maker's generative AI offering, is coming to China. On Wednesday, Reuters reported that China's regulator, the Cyberspace Administration of China, approved Apple's AI services in the country, on the back of a deal to integrate Alibaba's Qwen AI model into Apple's operating systems, including iOS, iPadOS, macOS, and visionOS. On Wednesday evening, a Baidu spokesperson reached out to TechCrunch to confirm that it is also working with Apple on Apple Intelligence features for Chinese iPhone users. The deal, which was rumored to be in the works last year, marks an important step for Apple's AI ambitions in a key market. In the second quarter, Apple sales in Greater China increased 28% to $20.5 billion. Apple also recently regained the No. 2 position in China's smartphone market after a recent shopping festival offered discounts on the iPhone lineup. Apple was rumored to be exploring a deal with Baidu, but reports at the time claimed it had faced issues adapting its models for Chinese customers. Given Baidu's statement, it appears the partnership continues. Apple also explored integrations with DeepSeek and with models from ByteDance, reports claimed. This led to delays in getting Apple Intelligence features, which debuted in 2024, to the Chinese market. Alibaba earlier confirmed the company's news to CNBC in a statement, saying that Qwen would be "integrated into Apple Intelligence experiences," but did not provide a timeframe. It also said the integrations would involve AI capabilities like "text and image understanding and generation." The original version of this article was published on July 15. The article was updated Thursday, July 16, with the statement from Baidu.

Alibaba and Baidu shares jump in Hong Kong on Apple AI partnership

In recent months, the technological rivalry between China and the U.S. have intensified, as they race for AI dominance. Shares of Chinese tech giants Alibaba and Baidu rose Thursday on their partnership with Apple for deploying their AI tools. Hong-Kong listed shares of Alibaba rose 5% after the company confirmed that its Qwen AI model would be integrated into Apple services in China. U.S.-listed shares of Alibaba had closed slightly higher overnight after an Alibaba spokesperson told CNBC that "Qwen will be integrated into Apple Intelligence experiences within iOS, iPadOS, macOS, and vision OS for users in China." Baidu's Hong Kong-listed shares gained 4% as the company confirmed that it was working with Apple on Apple Intelligence features for iPhones in China. This comes amid reports in late June that its artificial intelligence chip unit Kunlunxin is targeting an initial public offering in the city, which could value its affiliate at $50 billion. The Cyberspace Administration of China in a notice on Wednesday included Apple Intelligence, along with six other smartphone-based AI services including Huawei Technologies, in a list of approved service providers. The Apple-Qwen combination will allow users to access the model's capabilities, "like text and image understanding and generation, without needing to jump between tools," the Alibaba spokesperson added. The technological rivalry between China and the U.S. has intensified, as they race for AI dominance. The U.S. has sought to curb China's ability to access high-end chips, while Beijing has tried to wall off U.S. investments into Chinese tech companies. "AI leadership is becoming central to economic competitiveness, global standard-setting, and the maintenance of democratic governance," according to a report by research organization RAND. -- CNBC's Evelyn Cheng, Joseph Wilkins and Kai Nicol-Schwarz contributed to this report. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Apple Intelligence's China Win Sparks Rally in Alibaba, Baidu Shares in Hong Kong - Alibaba Gr Hldgs (NYS

Apple's China AI Partners In Focus Hong Kong-listed Alibaba shares were up about 4.76% at 118.80 HKD ($15.16), while Baidu gained nearly 3.91% at 111.70 HKD ($14.25) at the time of writing. Alibaba's Qwen large language model will power Apple Intelligence across Apple's operating systems in China, while Baidu will support AI features on iPhones in the country, CNBC reported. China requires generative AI services to undergo regulatory registration and content reviews before they can be released to the public, making the approval a key milestone for Apple's AI rollout. Regulatory Approval Clears Key Hurdle The approval comes nearly two years after Apple introduced Apple Intelligence globally and removes a major regulatory hurdle in one of the company's largest overseas markets. The Cyberspace Administration also approved AI services from Huawei, Xiaomi, Vivo and Oppo as part of the latest batch of registered mobile generative AI offerings. Price Action: Alibaba's U.S.-listed shares climbed 4.78% to $117.69 on Wednesday and rose another 5.59% in extended trading, while Baidu advanced 1.59% to $111.48 before adding 0.56% after hours. Benzinga edge rankings indicate BABA has a Momentum score in the 10th percentile and a Growth score in the 82nd percentile. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Alibaba, Baidu shares jump after Apple wins China AI approval By Investing.com

Investing.com-- Shares of Alibaba Group (HK:9988) and Baidu (HK:9888) climbed on Thursday after Apple (NASDAQ:AAPL) secured long-awaited regulatory approval to roll out its Apple Intelligence services in China. Hong Kong-listed Alibaba shares advanced nearly 5% by 05:14 GMT, while Baidu climbed 4% after China's cyberspace regulator approved Apple's on-device generative AI service for use on iPhones in the country. Get real-time updates on market-moving news with InvestingPro -- 60% off now The approval paves the way for Apple to launch Apple Intelligence in China, where generative AI services must receive regulatory clearance before being made available to the public. Apple's AI features in China will incorporate capabilities from Alibaba's Qwen large language model and Baidu's AI technologies, Reuters reported, citing a source familiar with the matter. Alibaba confirmed to Reuters that Qwen will power Apple Intelligence experiences across iOS, iPadOS, macOS and visionOS for users in China. The rollout could strengthen Apple's position in China, where the lack of AI features had put it at a disadvantage against domestic rivals including Huawei and Xiaomi.