Apple Partners with Alibaba to Bring Adapted AI Features to iPhones in China

Apple Intelligence Will Get a Revamp for iPhones in China, Report Says

Samantha Kelly is a freelance writer with a focus on consumer technology, AI, social media, Big Tech, emerging trends and how they impact our everyday lives. Her work has been featured on CNN, NBC, NPR, the BBC, Mashable and more. Apple is reportedly working with local partners to bring Apple Intelligence to China later this year, including adaptations to comply with the Chinese government's expectations of keeping iPhone users from seeing information it doesn't want them to see. The company is leaning on companies including Chinese tech giants Alibaba and Baidu to adapt its artificial intelligence system to meet regulatory requirements and provide region-specific infrastructure, according to a Bloomberg report. Apple did not respond to a request for comment, but Joe Tsai, chairman of Alibaba, confirmed during the the World Governments Summit in Dubai on Thursday that the companies are joining forces. "Apple has been very selective. They talked to a number of companies in China, and in the end, they choose to do business with us. They want to use our AI to power their phones," he said. The news comes as Apple looks to build momentum in China, its second-largest market, after it had seen a significant sales decline in the country. Rival companies continue to use advanced AI tools to lure customers away from the iPhone, many at more affordable price points. At the same time, Apple is expected to launch a more advanced yet still affordable iPhone SE next week, in a move that could help it better compete in key markets such as China and India, where budget-friendly smartphones with premium features continue to gain traction. According to a Bloomberg report, Apple is working with Alibaba to comply with government regulations by helping with censoring, filtering and blocking specific content to meet local standards. Meanwhile, Apple is reportedly teaming up with Baidu to power other features including Visual Intelligence, which allows people to scan and learn more about objects around them via the device's camera and information from the internet, and to replace the US version of ChatGPT integration in Siri. Chinese law requires data to be processed on China-based servers rather than being sent to servers in other countries. It also requires companies to work with local partners to receive regulatory approval. The company is expected to launch its adapted version of Apple Intelligence for China as early as May, the report said. The censorship will apply to iPhones and other devices sold only in China. Apple has only rolled out Apple Intelligence to certain markets so far, including the US, Canada, UK and Australia, due to compliance and regulatory restrictions. However, the company is expected to release Apple Intelligence support for new languages, including Chinese, with iOS 18.4 in April.

Apple Intelligence Will Get an Adaptation for iPhones in China, Report Says

Samantha Kelly is a freelance writer with a focus on consumer technology, AI, social media, Big Tech, emerging trends and how they impact our everyday lives. Her work has been featured on CNN, NBC, NPR, the BBC, Mashable and more. Apple is reportedly working with local partners to bring Apple Intelligence to China later this year, including adaptations to comply with the Chinese government's expectations of keeping iPhone users from seeing information it doesn't want them to see. The company is leaning on companies including Chinese tech giants Alibaba and Baidu to adapt its artificial intelligence system to meet regulatory requirements and provide region-specific infrastructure, according to a Bloomberg report. Apple did not respond to a request for comment, but Joe Tsai, chairman of Alibaba, confirmed during the the World Governments Summit in Dubai on Thursday that the companies are joining forces. "Apple has been very selective. They talked to a number of companies in China, and in the end, they choose to do business with us. They want to use our AI to power their phones," he said. The news comes as Apple looks to build momentum in China, its second-largest market, after it had seen a significant sales decline in the country. Rival companies continue to use advanced AI tools to lure customers away from the iPhone, many at more affordable price points. At the same time, Apple is expected to launch a more advanced yet still affordable iPhone SE next week, in a move that could help it better compete in key markets such as China and India, where budget-friendly smartphones with premium features continue to gain traction. According to a Bloomberg report, Apple is working with Alibaba to comply with government regulations by helping with censoring, filtering and blocking specific content to meet local standards. Meanwhile, Apple is reportedly teaming up with Baidu to power other features including Visual Intelligence, which allows people to scan and learn more about objects around them via the device's camera and information from the internet, and to replace the US version of ChatGPT integration in Siri. Chinese law requires data to be processed on China-based servers rather than being sent to servers in other countries. It also requires companies to work with local partners to receive regulatory approval. The company is expected to launch its adapted version of Apple Intelligence for China as early as May, the report said. The censorship will apply to iPhones and other devices sold only in China. Apple has only rolled out Apple Intelligence to certain markets so far, including the US, Canada, UK and Australia, due to compliance and regulatory restrictions. However, the company is expected to release Apple Intelligence support for new languages, including Chinese, with iOS 18.4 in April.

Apple Intelligence Plan for China Detailed in New Report

Apple is working to bring its AI features to China as early as May, with Alibaba and Baidu acting as local partners to help the company meet strict state regulations, according to a new Bloomberg report. Apple is said to have dedicated teams in both China and the US working to adapt its Apple Intelligence platform for the Chinese market, as it navigates the country's complex regulatory system. Alibaba is Apple's primary partner in the endeavor, with the e-commerce giant reportedly building an on-device system to analyze and modify Apple's AI models for iPhone, iPad, and Mac users in China. The system will include built-in censorship and filtering capabilities to comply with Chinese government requirements. Meanwhile, Baidu will act as a secondary partner, handling features like Visual Intelligence for the upcoming iPhone 16. The Chinese version of Apple Intelligence will differ significantly from the one featured on US Apple devices. The US version combines on-device features, server-based processing (Private Cloud Compute), and ChatGPT integration. In contrast, the Chinese version will rely heavily on local partnerships. Alibaba's software will basically be an intermediary layer that allows government-directed content filtering without the user knowing it. The AI features that result from the partnership will only be available on Apple devices sold within China, while devices purchased elsewhere and brought into the country won't have access to the local AI system. Apple has reportedly submitted materials to Chinese authorities for approval, but it still faces some regulatory hurdles before the features can be launched. The combined effort comes as Apple faces declining sales in China, its largest market outside the US, where local smartphone brands have gained market share partly thanks to their AI offerings.

Apple could roll out AI features for iPhones in China as early as May

The company is working with Alibaba and Baidu to bring Apple Intelligence to the country. Apple's artificial intelligence features for iPhones could be available in China as early as May, according to Bloomberg. The company reportedly established several teams in China and the US to make that happen, and it's also teaming up with local companies for its generative AI needs in the country. Joe Tsai, Alibaba Group's Chairman, recently confirmed that Apple will use his company's generative AI technology for Chinese iPhones during an event. Tsai didn't say when Apple intends to roll out the AI features that use Alibaba's tech, but The Information previously reported that the companies had already submitted them for approval to the country's regulators. Bloomberg says Apple will use Alibaba's technology for its on-device AI models, specifically as a layer on top that can censor certain materials and information for the Chinese government. Alibaba will be able to ask Apple to make updates to its AI models if China's government asks, and Apple will apparently disable outdated AI features on a user's phone until they update their device to remove any content that's been prohibited. These will only apply for iPhones meant for sale within China and not for devices purchased elsewhere. However, Apple Intelligence will not work in the country even on devices meant for sale in other regions once the user changes their location to mainland China. Tsai said during an event that Apple talked to several companies in the region for its AI needs, including DeepSeek. While Alibaba will be its primary AI partner in China, Bloomberg says Apple will also work with Baidu for certain features like Visual Intelligence, which lets users find information online by scanning items on their phone. For AI features that need additional power and have to be processed through external servers, Apple will likely have to work with a local partner, as well. As Bloomberg notes, bringing Apple Intelligence to Chinese iPhones is a critical goal for the company. China is Apple's second biggest market, but the company's sales are on the decline as customers turn to local brands that offer AI features on their devices. In the last three months of 2024, Apple's sales in the country dropped by 11.1 percent, putting Apple in third place in the country's smartphone market after Huawei and Xiaomi.

Apple works with Alibaba to bring Apple Intelligence to China

Apple's push to bring Apple Intelligence to China has taken a big step forward, with it working with Alibaba to produce AI features for the country's iPhone users. Apple is in the middle of a slow rollout of Apple Intelligence to its iPhone, iPad, and Mac users, with it currently only available in a small number of English-speaking countries. There is the intention to bring it to China among other territories, but regulatory issues have been the stumbling block so far. To operate in China, Apple has to abide by the country's regulatory rules concerning AI models. While it is a difficult prospect to do so by itself, the easier path is to partner with a tech company in the country working on AI, which can quickly be turned into a regional and regulation-meeting version of Apple Intelligence. According to The Information on Tuesday, Apple is working with tech giant Alibaba on its Apple Intelligence effort. A person familiar with the work says that the two companies have submitted the co-developed AI features for regulatory approval, with the hope that they can be brought to iPhones in a future iOS update. Doing so could help boost sales in China, with Apple still recovering from a tumble in shipments in 2024. Apple's trials to get Apple Intelligence into China have involved many failed relationships, until it struck gold with Alibaba. In December, a deal between Apple and Baidu was reportedly faltering, due to technical and philosophical privacy issues. Baidu's LLMs had failed to provide adequate responses to typical iPhone user questions. Baidu reportedly wanted more access to user data to improve results, but Apple didn't allow that to happen. In the wake of that failure, Apple started looking for other partnerships. Within the same month, it apparently talked to Tencent and ByteDance, owner of TikTok, to use their AI models for the same task. Evidently, they weren't good enough, and Apple went with Alibaba. Apple's decision to go with Alibaba may have been due to the company's existing trove of personal data, created from its massive e-commerce business. The report source said that the personalized data set would be usable for model training, with a view to providing more customized services to Chinese users. The timing of the partnership is apt for Apple, as it has a self-imposed deadline of an Apple Intelligence launch in simplified Chinese in April, for users outside of China. A release in China would still require regulatory approval, but the creation of a Chinese version would be a good step towards that inside-China launch.

Report reveals details of how Apple Intelligence will work in China

As reported earlier today, Apple has officially partnered with Alibaba to enable Apple Intelligence for iPhone users in China. The country has strict regulatory requirements on artificial intelligence, which has led Apple to partner with Chinese companies for AI processing. Now a new report from Bloomberg details how Apple Intelligence will work in China. In China, local legislation requires data to be processed on Chinese servers instead of being sent to third-party servers in other countries. Prior to today's confirmation, there were rumors about Apple negotiating with Alibaba and Baidu to power Apple Intelligence features in China. According to Mark Gurman, Apple has teamed up with both companies, which will help Apple enable different parts of Apple Intelligence for Chinese users. The partnership with Alibaba aims to create an on-device system that will analyze and modify Apple's AI models for iOS and macOS. This system will filter and censor the AI output to ensure that it complies with the Chinese government's requirements. Sources say that the Chinese government will be able to request changes to AI models through Alibaba when it needs to change the information delivered to users. Apple devices will be able to detect when they're running an outdated AI model and will automatically disable Apple Intelligence until new models are downloaded. This process will happen automatically in the background without users noticing. Baidu, on the other hand, will power features such as Visual Intelligence - which currently relies on Google and OpenAI. Presumably it will also replace the ChatGPT integration in Siri. Some more complex Apple Intelligence requests are processed online in what Apple calls a Private Cloud Compute. In China, Apple may process these requests on servers operated by state affiliate GCBD, the company that already operates iCloud for Chinese users. Apple has already confirmed that it will expand Apple Intelligence support to more languages for the first time with iOS 18.4. Among the new languages supported will be Chinese, French, German, Italian, Japanese, Korean, Portuguese, Spanish, and Vietnamese. Even so, the report says that Apple may wait until May to enable Apple Intelligence for users in China.

Apple Ditches DeepSeek And Partners With Alibaba To Bring Apple Intelligence To China, Submits First Set Of Co-Developed AI Features For Approval

Apple Intelligence has been making the rounds in the world with major upgrades across the entire operating system, and the company is consistently making improvements with every update. However, China has still not received Apple's AI features on the iPhone, which could hurt its sales in the long run. The reason why Apple Intelligence is not available in China is that the government has to approve any generative AI services in the country. To tackle this, Apple has partnered with Alibaba to bring Apple Intelligence to China. DeepSeek recently unveiled its R1 model and shocked the entire AI industry as it rivaled the likes of ChatGPT. It was previously reported that Apple could partner with DeepSeek to bring Apple Intelligence to China, but for unknown reasons, the company has moved ahead with Alibaba. Alibaba also recently unveiled its Qwen AI model, which, according to them, surpasses the competition, including DeepSeek and ChatGPT. If you are wondering why Apple did not bring its own AI to China, the government prefers local companies to international ones, which is why Apple Intelligence has been absent from Apple's platforms in the region. According to The Information, Apple and Alibaba have already submitted the first set of co-developed AI features to China's cyberspace regulator and are awaiting approval. At this point, there is no word available when the features will come out of the approval phase. We believe that Apple will move fast with its AI releases in China as AI utilities have been absent on the iPhone, iPad, and Mac for the past year, and the competition has been picking up pace. In December last year, Apple was slated to be in talks with Tencent and ByteDance to secure an AI partnership. Before that, the company was in talks with Baidu about bringing their AI services to the iPhone. If today's report has anything to go by, Apple has successfully and finally selected an AI partner in China. We have also previously reported that Apple's iPhone sales in China are hurting, which could be due to the lack of AI features, and with the latest partnership, the company would finally be able to bring Apple Intelligence into the region. Take note that the lack of AI features is not the only reason why iPhone sales are declining in China. The competition has been progressing fast with new designs and feature sets, and Apple's lack of innovation could also be the reason why users are losing loyalty to the competition.

Apple and Alibaba Said to Be Pairing Up for Apple Intelligence in China

These features are reportedly awaiting regulatory approval Apple has reportedly partnered with Alibaba to co-develop artificial intelligence (AI) features for its iPhone and other devices in China. As per the report, the Cupertino-based tech giant went through multiple AI-focused companies before finally selecting Alibaba. The duo have reportedly co-developed several AI features that cater to Apple's Chinese user base, and it is currently awaiting regulatory approval. There is still no time frame for when Apple Intelligence could make a debut in the region. Notably, a report earlier this month claimed that the company was also considering DeepSeek for the role. The Information reported that the tech giant has selected Alibaba as its AI partner in China, and will be working together to introduce AI features in its devices. Citing unnamed people with direct knowledge of the decision, the publication also claimed that the iPhone maker has already co-developed AI features with Alibaba. While no details about the developed AI features were shared, the report claimed that the features were submitted to China's cyberspace regulator for approval. Notably, any AI model or AI-powered feature is required to be approved by the Chinese government before it can operate in the country. According to the report, Apple decided to work with Alibaba as the e-commerce giant has a massive amount of personal data containing its users' shopping and payment behaviour. The Cupertino-based company reportedly believes that the data will allow it to build and provide more customised AI features and services. Notably, Apple had reportedly picked Baidu for the job last year. However, it is said that the iPhone maker was not impressed by the Chinese company's progress in developing AI models for Apple Intelligence. Apart from Alibaba and Baidu, the tech giant had also shortlisted Tencent, TikTok's parent company ByteDance, as well as DeepSeek, the report mentioned. However, DeepSeek eventually did not make the cut as Apple reportedly found the startup to be low on manpower and experience to offer support to its large user base. Apple recently rolled out some Apple Intelligence features in the European Union (EU). Currently, China is the only region where the iPhone 16 series is selling without any AI features, one of the main selling points of the smartphones. This reportedly resulted in a dip in sales during the December quarter, also known as the holiday quarter -- the tech giant's most important period in terms of sales.

Apple Partners with Alibaba to Bring AI Features to iPhones in China

China is Apple's second-largest market after the US, and securing a strong AI strategy in the region is crucial for the company. Apple has reportedly partnered with Chinese tech giant Alibaba to introduce AI features to iPhones in China, according to The Information. The move comes at a time when iPhone sales in China have declined, partly due to a lack of advanced AI capabilities. With local competitors like Huawei integrating AI into their smartphones, Apple aims to stay competitive by leveraging Alibaba's vast consumer data. Apple initially considered working with Baidu, Tencent, ByteDance, and DeepSeek but ultimately chose Alibaba. The partnership is expected to help the Cupertino-based giant navigate China's strict regulatory environment while enhancing Siri, search, and personalisation features for Chinese users. The delay in Apple Intelligence in China was due to its reliance on ChatGPT, which is unavailable in China. By collaborating with Alibaba, Apple may accelerate AI feature approvals and make iPhones more appealing in China. However, the deal also signals a rare shift for Apple, as it will need to integrate third-party AI into its tightly controlled ecosystem. This partnership highlights the growing importance of AI in the smartphone market and Apple's efforts to maintain its foothold in China. China is Apple's second-largest market after the US, and securing a strong AI strategy in the region is crucial for the company's competitiveness. Previously, Apple Intelligence came under fire for sending out an incorrect notification on the iPhone regarding a BBC news report about the arrest of Luigi Mangione, the lead suspect in the murder of UnitedHealthcare CEO Brian Thompson. "Luigi Mangione shoots himself..." read a part of the notification. Following this, Apple paused the feature.

Alibaba to manipulate Apple Intelligence output in China for censorship

Apple will finally be able to launch Apple Intelligence in China, but the cost is allowing Alibaba to manipulate AI output to be acceptable to the Chinese government. Apple Intelligence is an Apple-built artificial intelligence system that runs on devices and in the cloud through Private Cloud Compute. The ChatGPT chatbot can be called via Siri, and Visual Intelligence allows users to search Google, but all the iPhone AI features are built from the ground up with privacy in mind. According to a report from Bloomberg, Apple's ability to bring Apple Intelligence to China relies solely on giving the government the ability to censor the output. So, in an unprecedented move, Apple has partnered with multiple AI companies in China to help ensure its customers can use a sanitized version of Apple Intelligence. Alibaba was confirmed as an AI partner for Apple earlier Thursday, but the details of the deal were unknown. The new report details exactly how the company will be involved. Apple Intelligence will remain intact as it is in other places in the world, but users in China will have an additional Alibaba layer over it. This layer will manipulate the output of Apple Intelligence to ensure any and all information passed to the user will be censored anything the government doesn't want shown. Presumably, Private Cloud Compute would still work, but it would need to be hosted with a different Chinese company in their servers. OpenAI won't be available, but other AI partnerships could be utilized for world knowledge. Baidu is reportedly being used for Visual Intelligence, similar to Google in the US. This is the feature on iPhone 16 lineup available when users long-press the Camera Control button. China also has a requirement that turns off Apple Intelligence when an update is available. This ensures that when Alibaba's layer needs new censorship information, it can be updated without the danger of the user encountering censored content. Artificial intelligence is clearly a big mover in the smartphone industry. Apple claimed that regions like China were weaker during the Q4 earnings call because of the lack of Apple Intelligence in the region. Apple is expected to have an update that enables Apple Intelligence on iPhones sold in China by May. Only devices purchased in China will get this Alibaba layer -- iPhones brought from out of country simply won't have AI. While the Alibaba layer is unprecedented, it is clearly necessary if Apple wants to sell iPhones with AI in the country. Apple has to adhere to laws and demands of all countries it operates in, whether that's enabling the censorship of data in China, allowing third-party app stores in the EU, or appeasing the President in the United States to avoid tariffs.

Apple will integrate Alibaba's AI into iPhones in China, chairman Joe Tsai says

An Apple Store on Jan. 26, 2025, in Chongqing, China. Cheng Xin | Getty Images News | Getty Images Alibaba Group Chairman Joe Tsai confirmed on Thursday that the company was partnering with Apple to roll out AI for iPhones sold in China, speaking at the World Governments Summit in Dubai. "[Apple] 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," Tsia said. The partnership was first reported by tech-focused news organization The Information on Tuesday, triggering a jump in Alibaba and Apple shares. The announcement could provide clarity on Apple's AI strategy in China, especially as its market share erodes in the world's largest smartphone market amid increased competition. While domestic rivals such as Huawei have launched devices with AI features since last year, Apple has been quiet about its 'Apple Intelligence' push in the market, despite plans to launch in the U.S. this fall. Apple Intelligence is the Cupertino-based company's play that aims to bring AI across its devices, featuring an improved version of its voice assistant Siri, as well as features that automatically organize emails and transcribe and summarize audio. Analysts have told CNBC that Apple's AI rollout in China has likely stalled due to China's stringent rules. Beijing has enacted various regulations on AI over the past few years with some of the rules requiring large language models to get approval for commercial use. Generative AI providers are also responsible for taking down "illegal" content. However, Tsai said Thursday that the Alibaba partnership could offer Apple a local partner to help navigate regulatory environment and localize its AI.

Alibaba Group Chairman Officially Announces Partnership To Bring Apple Intelligence To iPhones In China, But No Confirmation On When Generative AI Features Will Arrive

Apple Intelligence support in China was having a difficult time finding a strong footing, with a multitude of reports stating that a partnership with Tencent or ByteDance was imperative to bring generative AI features to iPhones in the region. DeepSeek was also an option for Apple, but it was reported that the technology giant ditched the AI startup's chatbot in favor of Alibaba. As it so happens, the latter's chairman has made an official announcement regarding the partnership to bring Apple Intelligence to compatible devices in China. Like DeepSeek, Alibaba also makes open-source AI models that are available to the masses to use for free or modify to suit their needs. Additionally, the company produces advanced AI models that are closed-source. As reported by the South China Morning Post, with the introduction of its Qwen2.5 series in September of last year, Alibaba released more than 100 open-source models with parameters ranging from 500 million to 72 billion. The height of the company's capabilities in artificial intelligence likely attracted Apple to close a deal with the multinational technology firm. During the World Governments Summit in Dubai, Alibaba Group's chairman, Joe Tsai, confirmed the company's partnership in bringing Apple Intelligence to China, resulting in its stock price rising to a three-year high. This tag-team will be exceptionally beneficial to the iPhone maker, as Apple CEO Tim Cook admitted that countries, where its generative AI features were supported by compatible devices, saw an uptick in iPhone 16 sales, which might also be the reason why revenue from China dropped in the latest Q1 2025 earnings report. While there is no confirmation on when Apple Intelligence will officially launch in China, we believe that the rollout time required will be reduced substantially because of the country's strong regulations that require the partnership of a local company. This hurdle would also explain why ChatGPT cannot be integrated with Apple Intelligence in China. With the new announcement, the Cupertino firm has managed to scale an imposing obstacle and could obtain an edge in a market that witnesses the highest smartphone shipment by volume.

Apple could partner with Alibaba for AI features in China

Apple is partnering with Alibaba to introduce artificial intelligence (AI) features for iPhone users in China, according to a report by The Information. This move aims to address Apple's declining market share in the region, where competitors like HUAWEI have already integrated AI tools into their devices. The report said Apple initially selected Baidu as its primary AI partner last year, but later shifted focus after Baidu's AI models failed to meet Apple's standards. Apple then evaluated AI models from Tencent, ByteDance, Alibaba, and Deepseek. However, Deepseek was ruled out due to its limited team size and experience. Alibaba's extensive data on user shopping and payment habits reportedly influenced Apple's decision, as this data could help train AI models and deliver more personalized services. The companies have submitted their co-developed AI features to China's cyberspace regulator for approval. The report added that rolling out AI tools is critical for Apple, as iPhone sales dipped during the holiday quarter -- typically its strongest sales period -- due to the lack of AI features. Apple has forecasted strong sales growth for the current quarter, raising hopes for a rebound in demand. With Alibaba's involvement, the approval process for AI features with Chinese regulators might accelerate. iPhone users in China could soon experience smarter Siri responses, improved search capabilities, and enhanced personalization options. This partnership marks a shift for Apple, which has traditionally maintained tight control over its ecosystem. To remain competitive in China, Apple is compromising by integrating Alibaba's AI into its devices. This raises questions about how regional differences might shape future Apple products. For now, Apple's immediate focus is to ensure iPhones in China feel as advanced as those from local competitors. As AI becomes a key factor for consumers, the partnership with Alibaba could help Apple stay relevant in one of the world's largest markets. Further details are expected as the collaboration progresses.

Apple Reportedly Links With Alibaba for Chinese AI Rollout | PYMNTS.com

Apple reportedly found a partner to help it bring its artificial intelligence features to devices in China. The iPhone maker is working with Chinese tech giant Alibaba to develop and launch its Apple Intelligence AI offering in the crucial market, The Information reported Tuesday (Feb. 11), citing an unnamed source. Apple and Alibaba submitted the AI features they developed to China's cyberspace regulator, according to the report. Neither Apple nor Alibaba replied to PYMNTS' request for comment. Apple decided not to go with DeepSeek, as that company's team did not have the experience or staffing levels needed to support a company of Apple's size, according to the report. On an earnings call late last month, Apple CEO Tim Cook said the iPhone 16 models saw stronger sales in markets where Apple Intelligence features were available. In China, the company's sales fell 11.1% during the latest quarter to $18.51 billion, the greatest drop in revenues there since the same quarter in 2024, when they declined by 12.9%. "We did see that the markets where we had rolled out Apple Intelligence, that the year-over-year performance on the iPhone 16 family was stronger than those where Apple Intelligence was not available," Cook told analysts during the company's earnings call. This shows that the new AI capabilities, such as features like writing tools, Image Playground, Genmoji and Visual Intelligence, are fueling customer demand, he said.

China to get finally Apple Intelligence as Alibaba deal is confirmed

The rumored collaboration between Apple and Alibaba to get Apple Intelligence in China has now been confirmed, sending Alibaba shares rising to a new high. China has regulatory rules regarding the use of AI models, with the practical effect that a US company effectively has to find a Chinese partner. It was previously rumored that Apple was in talks with Alibaba, and according to Reuters, that company's chair has now announced the collaboration. "They talked to a number of companies in China," Alibaba chair Joseph C. Tsai said at the 2025 World Government Summit in Dubai. "In the end they chose to do business with us." "They want to use our AI to power their phones," continued Tsai. "We feel extremely honoured to do business with a great company like Apple." Apple has not commented and no further details have been released. Consequently, it's not yet known whether the Chinese version of Apple Intelligence will retain its links to ChatGPT and other services. The collaboration between Apple and Alibaba will significantly ease the difficulties Apple would have faced trying to get Chinese regulatory approval for Apple Intelligence. However, the two companies still have to apply for that approval, and reportedly they have begun the application process. Shares in Alibaba, as listed in Hong Kong, rose by 9.2%. It ended the day at HK$124.3 (approximately $16), which is its highest since January 2022. Chair Tsai is correct that Apple discussed collaboration with a number of other Chinese companies before coming to Alibaba. Specifically, Apple talked with Tencent and TikTok owner ByteDance, about using their AI models for Apple Intelligence in the region. Apple had appeared to be set on working with Baidu, but there were technical issues. There were also reportedly differences of opinion over privacy concerns. It's not known how long it will take Apple and Alibaba to complete their collaboration and also get Chinese approval. But, separately, Apple has set a goal of providing Apple Intelligence localized to simplified Chinese by April 2025 -- for users outside China.

Apple Partners With Alibaba to Bring iPhone AI Features to China

Apple will partner with Alibaba to offer AI features in China, the Chinese company's chairman said on Thursday, resolving months of speculation around Apple's strategy in the region (via Reuters). "They talked to a number of companies in China," said Joe Tsai at the World Government Summit in Dubai. "In the end they chose to do business with us. They want to use our AI to power their phones. We feel extremely honoured to do business with a great company like Apple." Apple has not yet rolled out its full suite of AI features in China because of regulations that require it to partner with a local company. Apple devices outside of the country use a combination of proprietary Apple Intelligence and OpenAI's ChatGPT to provide AI features. The Information reports that both Alibaba and Apple have already submitted materials to authorities for approval. Today's development follows news earlier in the week that Apple "passed over" the Chinese AI company DeepSeek, which recently made waves in the industry for being developed at a significantly lower cost than rivals.

Apple partners with Alibaba to develop AI features for iPhone in China, The Information reports

Feb 11 (Reuters) - Apple (AAPL.O), opens new tab is partnering with Alibaba (9988.HK), opens new tab to develop and roll out AI features for iPhone users in China, The Information reported on Tuesday, citing one person with direct knowledge of the decision. Apple and Alibaba did not immediately respond to Reuters' requests for comment. Apple shares were up nearly 1% before the bell. The Cupertino-based company and Alibaba have submitted the Chinese AI features it co-developed for approval by China's cyberspace regulator, the report said. Apple began testing different AI models from Chinese developers in 2023 and selected Baidu as the primary partner, according to the report, quoting two people with direct knowledge of the matter. But the collaboration was later scrapped because Baidu's progress in developing its models for Apple Intelligence fell short of the US company's standards, the report said. The iPhone-maker in recent months started to consider other options, assessing models developed by Tencent, ByteDance, Alibaba, as well as Deepseek, the report added. Apple eventually passed over Deepseek's models because the Deepseek team lacked the manpower and experience required to support a large customer like Apple, the report said. Reporting by Rishi Kant in Bengaluru; Editing by Leroy Leo Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

Report: Apple strikes deal to bring AI to China, rejects DeepSeek option - 9to5Mac

iPhone sales have been struggling in China, where Apple has been unable to launch Apple Intelligence features yet. But per a new The Information report, the company has just struck a deal to bring AI to China. Qianer Liu and Jing Yang have published a new report for The Information (paywalled) that outlines Apple's newfound solution to bringing AI to China. The US tech giant has partnered with a China-based giant, Alibaba, to bring Apple Intelligence features to the iPhone, iPad, and Mac in China. Due to restrictions from the Chinese government, Apple can't launch AI features in the country unless it is done in partnership with a China-based company. Apple has already said that Apple Intelligence support for Chinese would arrive in iOS 18.4 this April. An important stepping stone in bringing full AI support to the country. It has never shared concrete plans for enabling AI in China, though. Interestingly, today's report also mentions that Apple tested DeepSeek's models as part of its efforts to bring AI to China. The company reportedly decided to pass on implementing them in its China AI rollout. The Information also previously reported that Apple was also working with Baidu to develop AI features in China. Apple Intelligence is a large umbrella that encompasses a variety of AI features, such as writing tools, image generation, and intelligent assistant support. It's possible the company has opted to work with various Chinese partners on different aspects of its AI feature set. Today's report is further evidence of Apple's momentum in bringing Apple Intelligence to one of its most important markets. Here's hoping the company can work quickly to enable AI support as it seeks to turn around its weakening iPhone marketshare in China.

Apple partners with Alibaba to bring AI for iPhones to China, The Information reports

Apple and Space-X teaming up in a partnership that could allow you to send a text even with no coverage. Apple AAPL.O is partnering with Alibaba 9988.HK to roll out artificial intelligence features for iPhone users in China, the Information reported on Tuesday, citing one person with direct knowledge of the decision. The development could clear months of uncertainty over Apple's AI strategy for China, where it has been losing market share to domestic rivals, including a resurgent Huawei whose smartphones have included AI tools since last year. Apple stock rose 1.5% in early trading, while U.S.-listed shares of Alibaba BABA.N gained 2.6%. Apple had selected Baidu as its main partner last year, but the Chinese company's progress in developing models for Apple Intelligence fell short of its standards, the report said. After that, Apple considered models developed by Tencent 0700.HK, TikTok-parent ByteDance, Alibaba and Deepseek, but it passed on Deepseek as the startup's team lacked the manpower and experience needed to support a large customer, the report said. Apple and Alibaba did not immediately respond to Reuters requests for comment. The companies have submitted the Chinese AI features they co-developed for approval by China's cyberspace regulator, the report said. Rolling out the tools is crucial as iPhone sales dipped in the holiday quarter - usually Apple's biggest period of sales - due to a lack of AI features that were meant to be the chief selling point of its latest devices. The company has forecast strong sales growth in the current quarter, fanning hopes that iPhone demand will rebound. The Information said Apple's decision to go with Alibaba was partly driven by the vast troves of personal data the e-commerce giant has on users' shopping and payment habits, which could help it train models and deliver more customized services.

Alibaba's AI to Power Apple's China iPhones, Report Says

CNBC cited Tsai speaking at the World Governments Summit in Dubai and reportedly said the U.S. phone maker settled on Alibaba as a partner after conversations with several Chinese companies. Tsai said, according to the news outlet, that Apple wants Alibaba to "power" its phones and that the Chinese tech firm could help the U.S. company to "navigate the regulatory environment and localize its AI." Neither Alibaba nor Apple returned requests for comment. The Information on Tuesday and The Wall Street Journal early Wednesday reported that Apple had submitted AI features developed with Alibaba to Chinese regulators for approval, a process that could take several months. Apple's China iPhones aren't equipped with its recently launched AI features, called Apple Intelligence. Both Alibaba and Apple shares are little changed in premarket trading. A successful partnership between the two could help Apple with sales in China, a key market where it has been losing market share to domestic rivals. Greater China was the only region where Apple's first-quarter sales declined year-over-year, and iPhone sales in the country missed analysts' expectations.

Apple is reportedly partnering with Alibaba in China for AI features, and it makes sense after DeepSeek

Alibaba's vast consumer data and AI expertise make it an ideal partner for Apple's plans for China DeepSeek has been at the center of frenzied interest in Chinese AI developers; even so, Apple is reportedly teaming up with Chinese tech giant Alibaba to produce new AI features for iPhones sold in China, according to The Information. Apple has been keen to carve out a bigger piece of the smartphone market in China after a decline in recent years and is placing a bet on AI as the solution, and Alibaba might just be the partner to help produce appealing AI tools for its devices. The potential decision to work with a Chinese company rather than simply deploying Apple Intelligence as it stands is not a complete surprise. Apple didn't have much choice about finding a Chinese partner to get its AI tools approved by regulators. However, Alibaba isn't the expected partner, according to the report. Apple had apparently planned to work with Baidu before deciding that Baidu's AI models weren't quite what they wanted. The company reportedly considered offerings from other Chinese AI developers, including e-commerce giant Tencent and TikTok owner ByteDance. Apple even considered teaming up with DeepSeek before its explosive debut in the U.S. However, according to the report, Apple ultimately ruled out DeepSeek because it simply didn't have the workforce or experience to handle a deal of this scale. Ultimately, Alibaba emerged as Apple's choice for a few reasons, according to the report. By far, the biggest is that Alibaba has access to a staggering amount of data on Chinese consumers. With insights into shopping, payments, and general digital behavior, Alibaba's AI could help Apple offer more personalized and localized features to iPhone users in China. Beyond the regulatory demands, Alibaba could also help Apple stand out from its Chinese competitors. Huawei, in particular, has been ramping up its AI-enhanced smartphone sales for nearly a year, enticing those who might previously have bought iPhones. Alibaba's involvement might speed up the approval process for AI features with Chinese regulators. Based on the report, Apple device owners in China might see some smarter Siri responses, improved search capabilities, and better personalization options appear on their devices as a result of the deal. Apple has long been known for tightly controlling its ecosystem. This partnership would force Apple to open up a little and relinquish some of that control to embed Alibaba's AI. It's a necessary compromise to stay in the Chinese market, but it also raises questions about how regional differences will change Apple products. For now, Apple's immediate goal is simple: make iPhones in China feel as cutting-edge as their local competitors. With AI increasingly becoming a deciding factor for consumers, a potential partnership with Alibaba might be Apple's best shot at staying relevant in one of the largest markets in the world.

Alibaba chairman officially announces Apple partnership to bring iPhone AI to China - 9to5Mac

Apple has officially partnered with Alibaba to bring Apple Intelligence AI features to the iPhone in China. Alibaba Group chairman Joe Tsai confirmed the deal on Thursday, sending the Chinese firm's stock price to a three-year high. Apple Intelligence in China will rely on Alibaba's Qwen model, satisfying the Chinese government's preference for a China-based AI model. The deal is a major boost for both Alibaba and Apple. Apple partially cited the lack of Apple Intelligence on iPhone in China as reason for the company's subpar performance in the region during the last quarter. No details yet on when Apple Intelligence can go live in China, but the iPhone will need to climb its way from third place to first place again with the help of competitive AI features. Apple Intelligence will expand to more regions across Europe with iOS 18.4 in April. The company says it saw iPhone growth during the holiday quarter in markets where Apple Intelligence was available. Tsai's statement at the World Governments Summit in Dubai is the first public confirmation of the deal between Apple and Alibaba Group.

Apple Joins Hands With Alibaba to Bring Apple Intelligence to China: Report

Tsai gave the confirmation at the World Governments Summit 2025 in Dubai Apple's partnership with Alibaba was reportedly confirmed on Thursday. As per the report, Alibaba chairperson Joseph Chung-Hsin Tsai confirmed the news at the recently concluded World Governments Summit 2025 held in Dubai. The Chinese e-commerce giant will reportedly offer its artificial intelligence (AI) models and infrastructure to power Apple Intelligence features in China. The two entities have reportedly co-developed several AI-powered features that will cater to Apple's Chinese user base, and it is currently awaiting regulatory approval. No other details are currently known. According to a Reuters report, the Alibaba chairperson confirmed that the company is working with Apple to develop and support the latter's AI features. "They talked to a number of companies in China. In the end, they chose to do business with us. They want to use our AI to power their phones. We feel extremely honoured to do business with a great company like Apple," Tsai was quoted as saying. Interestingly, the Alibaba chairperson also said that the Cupertino-based tech giant discussed the partnership with several other Chinese companies, confirming a previous report. It was said that the iPhone maker approached Tencent, TikTok's parent company ByteDance, Baidu, and DeepSeek, however, a deal could not be struck with any of them. Apple reportedly found DeepSeek to lack the necessary manpower and experience to cater to its large user base in the country. The report also claimed that Apple and Alibaba had co-developed several AI features and had submitted them to Chinese regulators for approval. Notably, the iPhone maker could not offer its AI features to users as China requires approval from its regulators before any company can develop or offer AI services. So far, no company outside of China has been approved by its government. Apple reportedly decided to work with Alibaba as the e-commerce giant is said to have stored a massive amount of personal data containing its users' shopping and payment behaviour. The Cupertino-based company reportedly believes that the data will allow it to build and provide more customised AI features and services.

Apple reportedly partners with Alibaba after rejecting DeepSeek for China AI launch | TechCrunch

According to a report published Tuesday by The Information, Apple is partnering Alibaba to bring its Apple Intelligence platform to China. The deal is said to arrive after the iPhone maker reportedly explored - but ultimately rejected - a potential partnership with uber-buzzy AI startup, DeepSeek, as well as with Bytedance. Apple initially selected Baidu as its partner in bringing Apple Intelligence to its customers in China, but issues adapting the Chinese search giant's models were apparently too great to overcome. While China has been a key market for the company, the flagship feature has yet to debut in the world's largest smartphone market. CEO Tim Cook cited the lack of Apple Intelligence as a driving force behind a recent 11% iPhone sales decline in China. Domestic phone makers including Huawei have rushed in to fill that vacuum. The new report arrives ahead of Apple's anticipated fourth-generation iPhone SE launch. The budget-focused handset has historically been a key driver for iPhone sales in both China and India, the world's first and second largest smartphone markets, respectively. Apple previously partnered with OpenAI for Apple Intelligence's U.S. launch. That deal adds ChatGPT access to the Siri smart assistant. Apple has also stated that it is open to additional partnerships, including Google's Gemini.

Apple partners with China's Alibaba to integrate AI features into iPhones

During his speech, Tsai revealed that Apple had considered several local companies before working with Alibaba. "They [Apple] want to leverage our AI capabilities to enhance their devices," he stated, indicating the critical role of Alibaba's technology in this initiative. The collaboration has already caught the attention of investors, as shares for both companies experienced a notable increase shortly after the announcement. Following the news, shares of Alibaba, which trades on the Hong Kong Stock Exchange, experienced a surge, reaching levels not seen since 2022 during the intraday session. Though the gains were later tempered, the stock remained up by approximately 2.5%, signaling investor confidence in the partnership, CNBC reported. This collaboration clarifies Apple's AI strategy, especially as the company faces intensifying competition in China, the largest smartphone market in the world. While local competitors like Huawei have been proactive in promoting AI features on their devices for some time, Apple has largely stayed quiet about its efforts, particularly its upcoming initiative known as "Apple Intelligence," which is set to launch in the U.S. this fall.

Alibaba says it will be Apple's AI partner in China

Alibaba's chair has said it will provide technology for Apple's artificial intelligence-capable iPhone models sold in China, confirming reports of a high-profile partnership that has fuelled a rally in the Chinese group's shares. "Apple has been very selective. They talked to a number of companies in China and in the end they chose to do business with us," Joe Tsai said at a conference in Dubai on Thursday. "They want to use our AI to power their phones, so we're very fortunate and extremely honoured to be able to do business with a great company like Apple," he said. The Californian company has been working to reinvent itself around AI this year, betting that consumers will upgrade smartphones to access new features that will not work on older models. But Apple has faced major obstacles to rolling out AI features in China, where any large language model offered to the public needs to undergo a rigorous testing and approval process by the authorities. A top Chinese regulator last year indicated to the Financial Times that Apple needed to partner with a Chinese company to navigate the approval process more easily. Apple tested models and discussed partnerships with many of China's leading AI players, including Baidu, ByteDance, Moonshot, Zhipu and Tencent, according to people familiar with the matter. DeepSeek's models were also tested, according to one person. China's cyber security watchdog has approved more than 300 domestic AI models for use so far. Tsai said that Apple was able to do AI partnerships with other companies outside China, "but inside China, because of regulatory issues and things like that, they need to work with Chinese companies that develop AI". "I think that is going to be the case wherever you do business in the future; you may want to have a localised AI that powers your devices," he added. Though Tsai said Apple chose Alibaba after discussions with many potential partners, it remains unclear if their deal amounts to an exclusive partnership. People familiar with Apple's plans for China have said the US company was considering using multiple Chinese AI models. Apple's Chinese rivals have aggressively rolled out AI features on smartphones, leaving the iPhone maker at a disadvantage. Its China business has also been hit by rising geopolitical tensions, which have caused a wide swath of state employees to ditch its handsets. In Apple's most recent financial quarter, sales in the key market dropped 11 per cent from a year earlier to $18.5bn, or 15 per cent of total revenue. Hong Kong-listed shares of Alibaba have risen more than 40 per cent from the start of this year. They have gained 17 per cent so far in February. The share performance came after Alibaba released its new version of AI model Qwen 2.5 following the launch of DeepSeek's model, which stunned global markets earlier this year with its capabilities and low cost of development. Alibaba declined to comment. Apple did not immediately respond to a request for comment.

Alibaba Exec Confirms Its AI Will Power Apple's China iPhones

CNBC cited Tsai speaking at the World Governments Summit in Dubai and reportedly said the U.S. phone maker settled on Alibaba as a partner after conversations with several Chinese companies. Tsai said, according to the news outlet, that Apple wants Alibaba to "power" its phones and that the Chinese tech firm could help the U.S. company to "navigate the regulatory environment and localize its AI." Neither Alibaba nor Apple returned requests for comment. The Information on Tuesday and The Wall Street Journal early Wednesday reported that Apple had submitted AI features developed with Alibaba to Chinese regulators for approval, a process that could take several months. Apple's China iPhones aren't equipped with its recently launched AI features, called Apple Intelligence. Alibaba shares are down 1.8% in intraday trading Thursday, while Apple shares are little changed. A successful partnership between the two could help Apple with sales in China, a key market where it has been losing market share to domestic rivals. Greater China was the only region where Apple's first-quarter sales declined year-over-year, and iPhone sales in the country missed analysts' expectations.

Alibaba confirms Apple deal bringing AI features to iPhones in China | TechCrunch

Alibaba on Thursday confirmed recent reports of a partnership with Apple that's set to bring AI features to iPhones sold in China. The deal is an important one for Apple, as iPhone sales have dropped precipitously in the world's largest smartphone market. The handset experienced an 11% year-over-year (YoY) drop in China, according to Apple's most recent earnings report. Apple "talked to a number of companies in China," Alibaba chairperson Joseph Tsai stated during Dubai's World Government Summit. "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 do business with a great company like Apple." According to reports, Apple's earlier deal with China's Baidu has been plagued with issues adapting the search giant's AI offering. Apple is also believed to have explored partnerships with ByteDance and DeepSeek, prior to settling on Alibaba. These sorts of partnerships are key to U.S. companies like Apple as they work for regulatory approval in China. Both Alibaba and Apple have reportedly submitted relevant materials to local authorities. Ahead of the company's most recent earnings call, CEO Tim Cook cited the absence of Apple Intelligence, the company's in-house generative AI solution, as a contributing factor in slowing international sales. "During the December quarter, we saw that in markets where we had rolled out Apple Intelligence, that the year-over-year performance on the iPhone 16 family was stronger than those markets where we had not rolled out Apple intelligence," the executive told CNBC. The company has banked on Apple Intelligence to drive the next major iPhone "super cycle" - a term referring to a dramatic uptick in device sales. Apple's speed and strategy in rolling out its own generative AI solution hampered its growth, as Google continues to deliver new Gemini features by way of Samsung phones, Pixel devices, and various other Android offerings. Increased domestic competition has also eaten into Apple's China market share. Vivo took the lead in the fourth quarter of last year, with 17% of the market, according to figures from research firm, Canalys. Huawei, which has seen a massive rebound following sanctions from the first Trump administration, grew shipments 37% year over year, scoring a second-place finish at 16% market share. Apple, which commanded 24% of the market the same time last year, dropped to 15%, putting it in a third-place dead heat with Xiaomi and Oppo. Apple is banking on the Alibaba deal to help regain some of that marke, but even if the partnership passes regulatory scrutiny, Apple's China future isn't crystal clear. Tariffs and trade tensions are likely to further impact sales in the key market. The company has notably been cozying up to Donald Trump during the President's second term. Cook donated $1 million to Trump's inaugural committee in January. More recently, Apple followed Google's lead by changing the name of the Gulf of Mexico to the Gulf of America on its Maps app. TechCrunch has reached out to Apple for additional comment on the Alibaba deal.

Chinese iPhones: Alibaba chairman confirms AI partnership with Apple

Image credit: Bloomberg Alibaba Chairman Joe Tsai said that the Chinese tech company will partner with Apple on AI for iPhones sold in the China market, while speaking at the World Governments Summit in Dubai on Thursday. Apple Invites: What this new iPhone app helps you do "They talked to a number of companies in China. In the end they chose to do business with us. They want to use our AI to power their phones. We feel extremely honoured to do business with a great company like Apple," Tsai said. Apple did not immediately respond to a request for comment. Must know: Apple launches Tap to Pay on iPhone in the UAE Rolling out AI tools in China is crucial for Apple as iPhone sales dipped in the holiday quarter, usually the US firm's biggest period of sales. AI features are the chief selling point of its latest devices in other countries but were missing from models in China where regulations require a local partnership. Alibaba has become a Chinese AI favourite among investors early in 2025, with its stock price up over 40 per cent so far this year. The firm in late January released a new version of its Qwen 2.5 artificial intelligence model whose functionality it said surpassed that of DeepSeek-V3, which caused a stir earlier this year for its capability and low cost.

Alibaba Chairman Joe Tsai Confirms Partnership With Apple

Alibaba chairman Joe Tsai confirmed that the e-commerce giant is working with Apple to roll out AI features for iPhones in China. "Apple has been very selective, they talked to a number of companies in China, and in the end, they choose to do business with us. They want to use our AI to power their phones," Tsai said at the World Governments Summit in Dubai. Tsai's comments come a day after reports of Apple having recently submitted Apple Intelligence features for China, developed with Alibaba, for approval by the country's cyberspace regulator. The news sent Alibaba shares up 8.5% on Wednesday. Shares were up another 3.3% in Thursday afternoon trading. Tsai explained that Apple needs to work with Chinese companies on AI features due to regulatory issues, Tsai said. "I think it's going to be the case in the future... wherever you do business, you may want to have a localized AI that power your devices," he added. Apple launched Apple Intelligence last year, a new AI tool that includes an improved Siri voice assistant, as well as a variety of text-generation and photo-editing capabilities. The U.S. tech giant's revenue from the Greater China region fell 11% in the quarter ending in December, a decline that CEO Tim Cook attributed partly to Apple Intelligence not being available in China. Alibaba and Apple didn't immediately respond to comment requests. The company is scheduled to report earnings next Thursday.

Alibaba to supply AI tech for Apple's iPhones in China: chairman

Alibaba's chairman said Thursday that the Chinese internet giant would supply artificial intelligence (AI) technology to power Apple's iPhones in the Asian nation. Apple has suffered from a slump in iPhone sales in China and last year ceded its status as the country's best-selling smartphone brand to two local rivals. Reports of a tie-up between Alibaba and Apple sent the Chinese firm's share price soaring this week, and chairman Joseph Tsai confirmed Thursday that the California-based company would "use our AI to power their phones". "Inside China, because of regulatory issues and things like that, (Apple) need to work with Chinese companies that develop AI," Tsai said at the World Governments Summit in Dubai. "Apple has been very selective. They talked to a number of companies in China and in the end, they choose to do business with us," he said. "We're very fortunate and... feel extremely honored to be able to do business with a great company like Apple." Alibaba's stock rose more than nine percent in Hong Kong on Thursday but lost much of its gains after Tsai's remarks. Apple claimed 15 percent of the Chinese smartphone market last year, behind Vivo's 17 percent and Huawei's 16 percent, according to a report by industry data provider Canalys. Two other domestic brands, Oppo and Honor, also logged market shares of 15 percent, the data showed. China aims to become a global AI leader by the end of the decade and several Chinese companies are already making waves in the sector. Chinese firm DeepSeek made headlines last month when it unveiled an AI chatbot that can match its American competitors apparently at a fraction of the cost.

Alibaba won't solve all of Apple's China problems

Apple is collaborating with Alibaba to introduce Apple Intelligence in China. This comes as the company faces declining sales and tariffs from the US. Beijing might investigate Apple's app store fees. Apple also needs to navigate US-China tensions and competition from Chinese brands like Huawei. CEO Tim Cook aims to manage this challenging environment.Apple Inc.'s China business kicked off the Year of the Snake inauspiciously. Revenue dropped 11% during the December quarter and iPhone sales plunged more than 18%. The Trump administration unveiled fresh tariffs on goods from its biggest manufacturing base, and it's still unclear if the Cupertino, California-based company can get out of them this time around. Beijing, meanwhile, is reportedly mulling a probe into its app store fees and practices. Also Read: Alibaba becomes China's new AI darling with $87 billion rally But it may have notched a much-needed win on Thursday: Alibaba Group Holding Ltd. confirmed it would be working with the iPhone maker to finally bring Apple Intelligence to China. The Information previously reported that Apple and the e-commerce giant had submitted a proposal to regulators. The company has launched its much-hyped AI features in the US and other jurisdictions, but has been plagued by delays in finding a local partner in a market where demand for personal generative AI services is red hot. Investors saw it as a major victory for Alibaba, sending its stock soaring on the initial report. Still, it's not clear if the long-awaited rollout of AI-enabled iPhones will be enough to turn things around for Apple in China. Maybe the process will go over better with Alibaba, but it's hard to imagine Apple Intelligence alone will be enough to overcome the company's new web of obstacles as geopolitical tensions escalate. The AI iPhone hasn't exactly lived up to the hype elsewhere. As my colleague Dave Lee puts it, the shared experience of many users who have gotten access to the features has been "annoyance." The rollout has been notably un-Apple-like -- staggered and imperfect -- even with the support of industry leader OpenAI. Perhaps it's a blessing in disguise regulators have forced Apple to take this slow in China. An even bigger headache is Apple's new, unwilling position as a bargaining chip in the trade war. The company was reportedly added to a list of US tech giants that Chinese officials can target as part of expected negotiations with the Trump administration. Within moments of the US's 10% China levies kicking in, Beijing responded with a probe into Alphabet Inc.'s Google. It was largely seen as a warning shot given that Google has very limited business left in China. Apple, meanwhile, still gets a major chunk of revenue from consumers there. It's still yet to be seen if Chief Executive Officer Tim Cook will be able to broker his company out of the fresh China tariffs. Given Cook's negotiating skills in the past, it's likely he will be able to score some kind of exemption again. Even without one, analysts expect the hit to ultimately be manageable. But that's only if the trade wars don't escalate. US President Donald Trump has long teased the threat of tariffs on chips from Taiwan. This would be painful: Taiwan Semiconductor Manufacturing Co. powers virtually all the processors in Apple's smartphones. These mounting US-China tensions could have more concerning ramifications. As one of the few American tech companies still operating in China, Apple has become the target of anti-American sentiment. Some of this backlash has played out in more Chinese consumers opting for domestic brands. It doesn't help that these local companies, such as Huawei Technologies Co., are already offering AI features. "It's the most competitive market in the world," Cook said on the most-recent earnings call when asked about China headwinds. He's right: As Apple's dominance over the smartphone market has eroded, Huawei has gained the top spot. And Apple's closest competitors are all Chinese. Bringing Apple Intelligence to China would be a good move, but it amounts to just one play in a new game of 4D chess. Apple will have to find a way to please Trump, Beijing, and notoriously frugal Chinese consumers. On the plus side, if anyone in the tech industry was up to such a task, it's Cook. He's laudably managed US-China relations over the years by being as shrewd as a serpent and as innocent as a dove, as the biblical saying goes. He's one of the few US business leaders with an active Weibo account, connecting directly with the Chinese public. Apple needs to do more of this, and has an ample opportunity next month at its developers conference in Shanghai. The sooner Apple brings its AI updates to China, the more likely it will be able to cash-in on Beijing's recent measures aimed at boosting consumer spending. Cook joined the rest of the tech elite in welcoming Trump's inauguration. And Apple moved quickly to label the Gulf of Mexico as the Gulf of America on its maps app to seemingly appease the new administration. Such actions could generate goodwill when dealing with a famously transactional administration. Apple has spent years walking a tightrope as it seeks to please all sides, while mutual animosity has all but snuffed out other hopes of Chinese and American consumer tech companies working together. Yet the recent DeepSeek frenzy showed that this divide may result in the US missing out. Even OpenAI CEO Sam Altman said this week that he is keen to "work with China," adding: "I think that's really important." An Alibaba partnership wouldn't solve all of Apple's China problems, but it would be a much-needed and mutually beneficial relationship. Perhaps it could serve as an example for policymakers that broader cooperation is possible.

Apple gets relief for an AI ache. It could fix Apple Intelligence for everyone

Table of Contents Table of Contents Why this is a massive breakthrough? Fixing Apple Intelligence for the whole world? It's no secret that Apple's AI efforts, especially on the iPhone, haven't quite managed to create a stir, neither in terms of capabilities, nor the pace of innovation. The company, however, has finally managed a breakthrough in one of its biggest markets, which is also the central part of its product manufacturing operations. Earlier today, Reuters reported that Apple has picked Chinese giant Alibaba to lead its AI efforts in the country. So far, iPhone and Mac users in China haven't been able to take advantage of the Apple Intelligence tech stack. That's due to the regulatory norms in China, which mandate a local partner to offer such services. Recommended Videos So far, Apple hasn't been able to pick a partner for offering generative capabilities aboard its phones and computing devices. For the rest of the world, Apple Intelligence arrived months ago, featuring the company's own work with generative AI tools and some extra help from OpenAI's GPT stack. Why this is a massive breakthrough? The deal with Alibaba is a crucial development for multiple reasons, as the company races to recover its slumping market share and stay competitive in the face of local rivals, including a resurgent Huawei. Apple was previously rumored to be in talks with other names such as Tencent and Baidu for serving AI features in China. "Apple has been very selective. They talked to a number of companies in China, and in the end they choose to do business with us. They want to use our AI to power their phones," Joseph Tasi, chairperson of Alibaba Group, was quoted as saying by Bloomberg. There is no word whether Alibaba will remain Apple's sole AI development partner for the Chinese market. Elsewhere, despite its deal with OpenAI, Apple is reportedly open to the idea of bringing Google's Gemini and Anthropic's Claude to the Apple Intelligence ecosystem. Alibaba is no small fish in the AI pond. Merely a couple of weeks ago, the company released its Qwen 2.5 AI model. The company said it not only outpaces the buzzy new AI agent that is DeepSeek, but also the recent models from Silicon Valley AI titans like OpenAI and Meta. "Qwen 2.5-Max outperforms almost across the board GPT-4o, DeepSeek-V3 and Llama-3.1-405B," the company claimed in an official statement, as per Reuters. According to Hugging Face, Qwen powers the world's top ten open-source large language models (LLMs). Fixing Apple Intelligence for the whole world? AI is a huge deal in China, especially in the context of smartphone innovation. "Mainland China's AI-capable smartphone market experienced a remarkable 591% year-on-year growth in devices shipped in Q3 2024," says a Canalys report. Every major smartphone player in China -- including Xiaomi, Huawei, Vivo, and Oppo -- now offers on-device as well as cloud-based implementation of AI features. The idea is not too different from how you experience on-device Gemini Nano on Google Pixel phones and the Galaxy AI stack on Samsung devices such as the Galaxy S25 Ultra. Speedy progress with optimizing these on-device AI models, reduction in costs, and improved performance have played a key role in democratizing AI smartphone features in China. In fact, the players are adopting closed as well as open-source ecosystems, which further picks up the pace for innovation. The best example of China's rapid progress in the AI field is DeepSeek, which sent the US-based AI companies into a frenzy and wiped billions of dollars from the stock market in one go. Of course, it was also quickly adopted by smartphone makers such as Honor. At the same time, a robust policy framework and focus on privacy have only encouraged local smartphone brands to embrace AI in China. Apple is following a similar approach to Apple Intelligence. But its deal with Alibaba could be beneficial for Apple customers across the world. Thanks to their quick adoption of AI, Chinese smartphone labels have been able to build AI-driven experiences at a rapid pace. From fun media editing to productivity tools for calls and connected computing, the progress has been quite impressive to witness. Apple's deal with Alibaba could very well offer a template for quicker AI feature development. Once that wheel starts spinning, the company would simply have to load those tricks atop the AI models it is already using with Apple Intelligence for the rest of the world.

iPhone AI features will be powered by Alibaba in China

"They talked to a number of companies in China. In the end they chose to do business with us. They want to use our AI to power their phones," Alibaba chairman Joseph Tsai said. "We feel extremely honoured to do business with a great company like Apple." The announcement doesn't quite end speculation as to which local tech companies Apple will partner with to enable its AI features. The company reportedly evaluated models from Tencent, ByteDance, and DeepSeek, and may still partner with other companies. Apple "continues to work with Baidu" on "an AI-powered search feature that can handle images and text," along with upgrades to the Chinese version of Siri, according to a report from The Information published today.

Alibaba Chair Confirms Apple AI Partnership in China | PYMNTS.com

A top executive from China's Alibaba has confirmed his company's AI partnership with Apple. Joe Tsai, Alibaba's chair, said at a conference in Dubai Thursday (Feb. 13) that the tech firm would work with Apple to help bring artificial intelligence (AI)-powered iPhones to China. His comments followed reports earlier this week about a collaboration between the companies. "Apple has been very selective," said Tsai, whose comments were reported by the Financial Times (FT). "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, so we're very fortunate and extremely honored to be able to do business with a great company like Apple," the executive added. Apple rolled out its AI offering -- dubbed "Apple Intelligence" -- last year after introducing the latest version of its flagship smartphone. However, the company has had trouble bringing its AI capabilities to China, which requires large language models to undergo strict testing and receive regulatory approvals. Apple has been looking for a China-based partner to help it through that process. A report earlier this week from The Information said Apple has since 2023 been testing various AI models from a host of Chinese developers, including Alibaba, ByteDance, Tencent and Baidu. The latter company briefly formed a partnership with Apple, that report said, but that arrangement ended after Baidu's efforts fell short of Apple's standards. Apple also considered but eventually passed on AI startup DeepSeek, as that company's team couldn't provide the manpower or expertise to support a company of Apple's size, the report added. The partnership comes as Apple is struggling in China. The company's sales there fell 11.1% during the latest quarter to $18.51 billion, the largest downturn in revenues in that country since the same quarter in 2024, when they slipped 12.9%. "We did see that the markets where we had rolled out Apple Intelligence, that the year-over-year performance on the iPhone 16 family was stronger than those where Apple Intelligence was not available," Apple CEO Tim Cook told analysts during an earnings call. According to the FT, Tsai said that Apple could undertake AI partnerships with other companies outside China, "but inside China, because of regulatory issues and things like that, they need to work with Chinese companies that develop AI." "I think that is going to be the case wherever you do business in the future; you may want to have a localized AI that powers your devices," he said.

Apple-Alibaba Join Hands for iPhone AI Features in China Amid DeepSeek Debate

Alibaba Joins Hands with Apple to Bring AI Technologies for Local iPhones It's indeed the time of DeepSeek, but Apple still preferred another company as its AI partner in China. It's been a few weeks since DeepSeek , and it has already challenged the biggest AI companies like OpenAI for a tough fight. On the one hand, its launch has wiped out billions of dollars from the world's biggest stock markets. But on the other hand, it is causing tech enthusiasts and governments of different countries sleepless nights . Governments across the world are worried that this Chinese AI software may use user data to harm people. Amidst this turbulent situation, the Cupertino-based company has cracked a deal with another Chinese tech giant to expand its market in China. Now that China is advancing in AI technology, necessary AI features for iPhone users in China, but that's impossible without the help of a local developer. Therefore, the search was going on for a while and landed with Alibaba joining hands. Apple is a partner of for running its AI models on iPhones, but the problem is that China doesn't allow OpenAI. Therefore, this iPhone company was forced to seek a local partner, and the reason behind choosing Alibaba was the strength and "cutting edge" capabilities of its model.

Apple, Alibaba to bring AI to iPhones in China: report (AAPL:NASDAQ)

Apple (NASDAQ:AAPL) is working with Alibaba (NYSE:BABA) to bring artificial intelligence features to iPhones in China, The Information reported. Apple shares rose 0.9% in premarket trading, while Alibaba erased early morning losses and rose 1%. This is breaking news... More on Apple and Alibaba Alibaba: My First Ever 'Buy' Rating Apple: Forget Q1 Results - Here's What Really Matters Apple Is Not Overvalued, Buy And Hold China targets U.S. tech firms with antitrust allegations following tariffs: report Apple supplier Foxconn sees January revenue climb year-over-year, eyes stronger growth in Q1

Apple's AI Split: Chooses Alibaba For China And OpenAI For Everyone Else - Alibaba Gr Hldgs (NYSE:BABA)

Apple Inc AAPL tapped Alibaba Group Holding BABA to develop and roll out artificial intelligence features for iPhone users in China, the Information cited an unnamed source familiar with the matter. Apple's move marks its attempts to consolidate its position in China as Apple Intelligence capability is unavailable to iPhone users. It lost market share in the country to government-incentivized local vendors amid intensifying geopolitical tensions with the U.S. Also Read: Apple's App Store Booms As ChatGPT, Productivity Apps Drive Revenue Growth, Analyst Says China also mandated international companies to tap a domestic company as a primary partner, which prompted Apple to partner with Baidu Inc BIDU to develop an AI model, only to part ways later as the latter failed to impress. Meanwhile, Apple and Alibaba submitted their co-developed Chinese AI features for China's regulatory approval, Reuters reports. Apple has also explored Tencent Holding TCEHY, ByteDance, and DeepSeek's AI models. However, the DeepSeek team lacked the expertise to support a large customer like Apple, according to the report. DeepSeek's affordable AI model reports triggered a U.S. tech selloff, with Nvidia Corp NVDA losing $600 billion in market value in a single day. In the U.S., Apple partnered with Microsoft-backed OpenAI to integrate ChatGPT into iOS 18, iPadOS 18, and macOS 15 Sequoia. The AI feature is available free of charge and does not log user data. OpenAI targets a billion users by 2025, driven by new AI products, a key partnership with Apple, and significant infrastructure investments. Recently, Apple's Tim Cook lauded DeepSeek for driving efficiency. By 2028, Counterpoint expects 90% of smartphones priced above $250 to be Generative AI-capable. Price Actions: At last check Tuesday, AAPL stock was up 3.05% at $234.60. BABA is up 3.49%. Also Read: DeepSeek Impact? Billionaire David Tepper Bets Big on China, Increases Stakes in Alibaba, JD.com, And PDD Image Via Shutterstock BABAAlibaba Group Holding Ltd$114.723.05%Overview Rating:Speculative50%Technicals Analysis660100Financials Analysis400100WatchlistOverviewAAPLApple Inc$235.223.32%BIDUBaidu Inc$90.05-4.05%NVDANVIDIA Corp$133.790.17%TCEHYTencent Holdings Ltd$55.61-1.58%Market News and Data brought to you by Benzinga APIs

Will Apple's AI Partnership With Alibaba Solve Its China Problem? Here's What Analysts Think

Morgan Stanley analysts said the reported partnership would be "a critical catalyst for Apple's competitive standing in China" and suggested it could solve Apple's iPhone sales slump in the country. Apple (AAPL) is reportedly partnering with Chinese e-commerce giant Alibaba (BABA) to develop Apple Intelligence features for iPhones in China, which analysts said could be a growth catalyst. The companies have co-developed artificial intelligence features and submitted them to Chinese internet regulators, according to a Reuters report citing The Information. Apple and Alibaba did not immediately respond to requests for comment. If successful, the partnership would bring a significant driver of iPhone upgrades to a market where Apple's sales have struggled. CEO Tim Cook said Apple saw record iPhone upgrades in its fiscal first-quarter, with stronger sales in markets where Apple Intelligence is available. However, the AI features have been unavailable in China since their October launch, hitting Apple during the key holiday sales season. Greater China was the only region where Apple's first-quarter sales declined year-over-year, and iPhone sales in the country missed analysts' expectations. Morgan Stanley analysts told clients Tuesday the reported Alibaba partnership would be "a critical catalyst for Apple's competitive standing in China," and suggested it could solve Apple's iPhone sales slump in the country. JPMorgan also said the move supports "bull case expectations" leading up to the company's expected launch of the iPhone 17 this fall. Apple shares rose more than 2% Tuesday, and U.S.-listed shares of Alibaba gained 1%.

Apple's iPhone Will Use Alibaba AI in China, Joe Tsai Says

"Apple has been very selective, they talked to a number of companies in China, and in the end they choose to do business with us, they want to use our AI to power their phones," Tsai told Jeffrey Katzenberg in an interview at the World Government Summit in Dubai.

Apple Reportedly 'Passed Over' DeepSeek as Apple Intelligence Partner

Apple in recent months "passed over" the Chinese artificial intelligence company DeepSeek, according to The Information. DeepSeek has garnered significant media attention over the past few weeks, as it developed an artificial intelligence model at a lower cost and with reduced power consumption compared to competitors. However, the U.S. and some other countries have moved to ban DeepSeek on government devices due to privacy concerns. Apple is required to work with a local Chinese company to develop artificial intelligence models for devices sold in China. The report said Apple had targeted Baidu as its partner last year, but Apple eventually decided that Baidu did not meet its standards, leading it to assess models from other companies in recent months. The report said Apple has assessed models developed by Alibaba, Tencent, and ByteDance, and it appears to be moving forward on a partnership with Alibaba at this time. Apple and Alibaba have submitted a first set of artificial intelligence features that they co-developed to China's cyberspace regulator for approval, the report said. Apple Intelligence will gain support for additional languages this year, including Chinese, according to Apple. The next set of new languages are coming in an April software update. However, this Chinese language support might be limited to countries outside of China until if and when Apple Intelligence is approved to launch there.

Apple Intelligence Rollout In China And Europe To Boost iPhone Sales, Says Deepwater's Gene Munster - Alibaba Gr Hldgs (NYSE:BABA), Apple (NASDAQ:AAPL)

Apple Inc. AAPL is set to introduce artificial intelligence (AI) features in China in collaboration with Alibaba Group Holdings BABA, a move that could potentially stimulate iPhone sales growth in the region, following a challenging period of declining sales. What Happened: According to a report by Deepwater Management's Gene Munster and Brian Baker, Apple's business in China has been experiencing a slump, with an average quarterly decline of 7% over the past six quarters. This downturn is largely due to Chinese consumers' preference for domestic brands and the absence of AI capabilities on iPhones in the region. In the past three years, China's smartphone market leadership has transitioned from iPhone to Xiaomi. However, the anticipated introduction of Apple Intelligence in China, possibly in the June or September quarter, could strengthen the case for a rebound in iPhone sales. However, Munster feels that the 10% growth expectation for iPhone for next year as cited by The Information could be too aspirational. "In this case, I would expect growth closer to 7-8%. If I'm wrong on FY25 and it comes in closer to 1%, I believe the 10% growth expectation is achievable, in part due to the late fiscal year rollout of Apple Intelligence in China," stated Munster. If Apple Intelligence is launched as speculated, iPhone growth could accelerate over the upcoming eight quarters, especially as these features are introduced in Europe and China. Munster emphasized that this would be irrespective of whether the iPhone sales declined in FY25 or FY26. SEE ALSO: What's Going On With Alibaba Shares Wednesday? Why It Matters: Apple's collaboration with Alibaba could be the secret weapon needed to reclaim lost ground in China. This decision follows the termination of Apple's previous AI development partnership with China's Baidu BIDU. The Apple-Alibaba partnership is also critical as Xiaomi and Huawei have been gaining market share with their AI-powered smartphones, while Apple's latest iPhones have lacked the AI capabilities that have become a key selling point. The success of Apple's strategy in China will depend on the effective integration of AI into its devices, navigating rising nationalist sentiment, and adapting its pricing strategy to align with changing consumer behaviors. Meanwhile, BofA Securities analyst Wamsi Mohan reiterated a Buy rating on Apple with a price target of $265. The analyst is confident of Apple's reliable cash flows and strong earnings stability, along with its potential advantages from integrating AI into edge devices. READ MORE: DeepSeek's Success Just The Start, More AI Funding 'Still Very Much Required,' Says Baidu CEO: 'You Just Don't Know When And Where Innovations Come From' (CORRECTED) Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. AAPLApple Inc$237.091.92%Overview Rating:Good75%Technicals Analysis1000100Financials Analysis600100WatchlistOverviewBABAAlibaba Group Holding Ltd$118.615.17%BIDUBaidu Inc$93.804.87%Market News and Data brought to you by Benzinga APIs

Alibaba Shares Surge After Progress in Apple Partnership -- Update

Alibaba's shares surged as the e-commerce giant made progress in its partnership with Apple to roll out artificial-intelligence features in China. Apple recently submitted Apple Intelligence features for China, developed with Alibaba, for approval by the country's cyberspace regulator, a person familiar with the matter said. The review process could take months, the person said. The news, earlier reported by The Information, sent Alibaba's shares 7.8% higher to 113.10 Hong Kong dollars, equivalent to $14.53, on track for their biggest daily gain since September. Apple rolled out Apple Intelligence last year, a new AI tool which includes an improved Siri voice assistant as well as a variety of text-generation and photo-editing capabilities. Chinese regulators require Apple to work with local companies to develop the generative AI services it plans to release in the country. Apple has been talking with major Chinese AI model providers since last spring. The iPhone maker was primarily working with Chinese search engine company Baidu until their collaboration ran into snags late last year, according to people familiar with the matter. The partnership of the two companies could serve as an endorsement of Alibaba's capabilities in AI, said Chelsey Tam, analyst at Morningstar. "It allows Alibaba to lay down the marker by having Apple as a flagship partner, and we could potentially see other companies expressing their interest in partnering with Alibaba," Tam said. In China, Apple has faced pressure from local rivals, such as Huawei, which sell phones with AI functions. Apple's revenue from the Greater China region fell 11% in the quarter ended December, a drop that Chief Executive Tim Cook said was partly because Apple Intelligence wasn't available in China. Alibaba provides a conversational chatbot service, Qwen, and has released models ranked highly for their performance by global researchers in Chatbot Arena. It has also embedded AI models into its e-commerce services. Apple didn't immediately respond to a request for comment. Write to Raffaele Huang at [email protected] and Tracy Qu at [email protected]

Apple Finds Its AI Wingman In Alibaba - Can It Power An iPhone Comeback In China? - Alibaba Gr Hldgs (NYSE:BABA), Apple (NASDAQ:AAPL)

Apple Inc AAPL may have just found its secret weapon to reclaim lost ground in China - Alibaba Group Holding Ltd BABAF BABA. After months of uncertainty, Apple has reportedly teamed up with the Chinese tech giant to bring AI features to iPhones in the country, giving investors a reason to cheer. Apple's AI Gamble In China The move couldn't come at a better time. Huawei has been eating into Apple's market share, riding high on AI-powered smartphones, while Apple's latest iPhones have lacked the AI muscle that's become a key selling point. With the iPhone 16 getting a boost from China's smartphone subsidies, Apple's AI-driven upgrade cycle could be the catalyst needed to reignite sales heading into the iPhone 17 launch. Read Also: Apple's AI Split: Chooses Alibaba For China And OpenAI For Everyone Else JPMorgan Sees A Game-Changer JPMorgan analyst Samik Chatterjee sees this as a game-changer. While Apple is keeping quiet for now, reports suggest the company has already submitted its AI models for regulatory approval -- positioning itself ahead of the iPhone 17 cycle. Chatterjee expects this AI integration to lift investor confidence in Apple's replacement cycle, with the stock's next earnings multiple peak potentially landing in the 32x-33x range. Alibaba Beats Baidu For The AI Spot Apple initially eyed Baidu Inc BIDU for its China AI partner but reportedly wasn't impressed with its progress. Instead, Alibaba won out, thanks in part to its vast user data, which could help Apple train more personalized AI models. Given that iPhone sales took a hit last quarter due to missing AI features, this partnership could be Apple's ticket to an AI-powered resurgence in China. Now, the big question: Will Apple's AI bet be enough to fend off Huawei? Investors seem to think so. For now as the stock closed the trading day Tuesday at $232.62, up 2.18%. Read Next: Trump White House Boasts Apple's 'Gulf Of Mexico' Rename, But Pinch To Zoom And You Might Be Surprised AAPLApple Inc$232.980.15%Overview Rating:Good75%Technicals Analysis1000100Financials Analysis600100WatchlistOverviewBABAAlibaba Group Holding Ltd$116.883.64%BABAFAlibaba Group Holding Ltd$14.19-1.44%BIDUBaidu Inc$91.332.11%Market News and Data brought to you by Benzinga APIs

Apple Will Use Alibaba AI Tech in iPhones

Apple Inc.'s iPhones will use Alibaba Group Holding Ltd.'s AI technology, the Chinese firm's chairman said, affirming reports the e-commerce pioneer had scored a coveted role in helping power the iPhone in the world's top mobile arena. Chairman and Co-founder Joe Tsai confirmed this during a panel at the World Governments Summit 2025 in Dubai. (Source: Bloomberg)

Apple Teams Up With Alibaba for AI, Analyst Says Edge Device Integration Could Boost Growth - Alibaba Gr Hldgs (NYSE:BABA), Apple (NASDAQ:AAPL)

BofA Securities analyst Wamsi Mohan reiterated a Buy rating on Apple Inc AAPL with a price target of $265. Reportedly, Apple is partnering with Alibaba Group Holdings BABA to develop AI features for Chinese iPhone users. The companies co-developed Chinese AI features and have submitted them to China's cyberspace regulator for approval. Also Read: SoftBank Q3 Earnings: Revenue Rises, Vision Fund Takes $2.33 Billion Hit As Investments Falter Mohan rerated Apple citing stable cash flows, earnings resiliency and potential beneficiary of AI use on edge devices. On Apple's first-quarter earnings call, CEO Tim Cook noted that markets with Apple Intelligence on iPhone outperform markets where it is not yet available, highlighting Apple's desire for a global rollout of the feature. Apple's China revenues have fallen for six consecutive quarters as competitors Huawei and Xiaomi have gained a market share. Mohan noted that Apple could regain its share in the Chinese market if it could launch Apple Intelligence successfully to compete with Huawei and Xiaomi's currently available AI offerings. Apple Intelligence is only available on iPhones in the U.S., Australia, Canada, New Zealand, South Africa and the U.K. However, It is available in the EU but only on Mac OS, with Apple noting that "many core features of Apple Intelligence" will roll out for EU customers on iPhone and iPad in April. During their first-quarter earnings call in April, Apple announced they are releasing additional languages for Singapore, India and Simplified Chinese. Presumably, with the release of these new languages, Apple Intelligence will roll out on iPhones in the corresponding countries (except for China). When asked, Apple noted that the Chinese language rollout targeted Chinese speakers outside of China and did not indicate any pending rollout for China. In the December iPhone update, Apple integrated enhanced Siri with ChatCPT functions to expand Siri's abilities, but this feature is available only in the U.S. Alibaba's LLM (large language model), QWEN, just launched the 2.5 model version at the end of January. It is said to surpass DeepSeek-V3 (performance metrics unknown). Price Actions: At last check Wednesday, AAPL stock was up 0.83% at $234.56. Also Read: Alibaba Cloud's Growth Accelerates With AI, Analyst Weighs DeepSeek's Rising Competition Photo: Shutterstock AAPLApple Inc$234.930.99%Overview Rating:Good75%Technicals Analysis1000100Financials Analysis600100WatchlistOverviewBABAAlibaba Group Holding Ltd$119.365.84%Market News and Data brought to you by Benzinga APIs

Apple just gave Alibaba stock a 5% burst: Should you buy in?

Alibaba Group's U.S.-listed shares surged nearly 5% on Wednesday, closing at their highest level in over two years, following reports of a partnership with Apple to develop artificial intelligence features for Apple products in China. Apple submitted AI features developed in collaboration with Alibaba to Chinese regulators for approval, a process expected to take several months. Analysts suggest that this partnership could revitalize Apple's slowing sales in China, a vital market for the tech giant. Upgrades, a key driver in device sales, have been more prevalent where AI features have launched, such as in the U.S. Apple is also likely to benefit from access to Alibaba's extensive e-commerce data, potentially making AI offerings more personalized, according to Bloomberg. Wednesday marked the fifth consecutive day of gains for Alibaba's U.S.-traded shares. Jefferies analysts previously raised their price target for the stock to $150 from $144, without incorporating the potential impact of the reported partnership with Apple into their report. Meanwhile, JPMorgan analysts indicated they do not expect Apple to confirm the partnership until the features are ready for launch, but noted that this rollout could signify "significant progress" for Apple in China and potentially boost sales of upcoming iPhone models. Shares of Alibaba have gained over 60% in the past year, reflecting investor confidence boosted by news of the Apple collaboration. Apple's stock also rose by 1.8% on Wednesday and has seen a gain of more than 25% over the last year. How Alibaba stock drived 5.5% boost from DeepSeek competition During a speech at the World Governments Summit in Dubai, Alibaba chairman Joe Tsai highlighted the selective nature of Apple's choice to partner with them, stating, "Apple has been very selective. 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." However, Tsai did not disclose further details about the timeline for the partnership or whether Alibaba would be an exclusive partner. The partnership comes as Apple faces intensified competition in China from domestic brands like Huawei and Vivo, which have been reclaiming market share. According to CNN, Lucas Zhong, a research analyst at Canalys, noted that while AI services could help Apple attract users, the company encounters a tough competitive environment, especially with Huawei's recent resurgence. Huawei captured a 16% market share in China last year, overtaking Apple's 15%, but Apple regained the lead in 2023 with a 19% market share compared to Huawei's 12%. Alibaba's Hong Kong-listed shares have surged over 40% since hitting a two-year low in January. The company recently introduced its latest Qwen AI model shortly after Chinese startup DeepSeek unveiled a competitive AI model. In related news, Elon Musk announced that his company xAI will launch Grok 3, a new large language model, in one to two weeks, claiming it outperforms existing AI chatbots currently on the market. Disclaimer: The content of this article is for informational purposes only and should not be construed as investment advice. We do not endorse any specific investment strategies or make recommendations regarding the purchase or sale of any securities.

Why Alibaba Stock Closed at a 2-Year High on Wednesday

Analysts have said the launch of the AI features could help boost iPhone sales in China. Shares of Alibaba Group (BABA) listed in the U.S. extended their rally into Wednesday amid reports that the Chinese tech and e-commerce giant is partnering with Apple (AAPL) to create artificial intelligence features for Apple products in China. The Information on Tuesday and The Wall Street Journal early Wednesday reported that Apple has submitted AI features developed with Alibaba to Chinese regulators for approval, a process that could take several months. Apple and Alibaba did not immediately respond to requests for comment. Analysts said that the partnership and rollout of AI features in China could help Apple's slowing sales in China. Upgrades, a key driver of Apple device sales, have been more common in regions where the AI features have launched, like the U.S. The deal could also allow Apple to access the data Alibaba has collected through its e-commerce offerings to allow the AI products to be more personalized, Bloomberg reported. Wednesday marks the fifth straight winning session for Alibaba's U.S.-listed shares. Jefferies analysts lifted their price target to $150 from $144 on Wednesday, without yet mentioning or factoring in the reported Apple partnership in its research report. JPMorgan analysts said Tuesday that they don't expect Apple to confirm the partnership until the features are ready to be launched, but said the rollout could mark "significant progress" for Apple in China and help boost sales of the iPhone 16, or the iPhone 17 the company is expected to announce later this year. Shares of Alibaba rose almost 5% on Wednesday to close at their highest level in more than two years. The stock has gained more than 60% in the past year. Apple shares rose 1.8% Wednesday and have gained more than 25% over the last 12 months.