Apple has decided to team up with Alibaba to introduce AI features on iPhones in China, ending a period of guesswork about how Apple would handle AI in the Chinese market.
iPhone 16 Apple intelligence
Joe Tsai, Alibaba’s chairman, shared this news at the World Government Summit in Dubai. He said, “Apple looked at several companies in China. In the end, they decided to work with us. They want our AI to enhance their phones. We are thrilled to collaborate with a company like Apple.”
Following this announcement, Alibaba’s shares jumped by as much as 8.6%. This was after a report from The Information confirmed that Apple was indeed teaming up with Alibaba to launch AI features in China. Due to local laws, Apple has not yet introduced all its AI capabilities in China without a local partner.
Outside China, Apple devices utilize a mix of Apple’s own AI tech and OpenAI’s ChatGPT for their AI functions. Both companies have reportedly sent the necessary paperwork to Chinese authorities for the go-ahead.
This partnership announcement comes after news that Apple had initially considered another Chinese AI firm, DeepSeek, but chose not to proceed. It was also revealed that Apple had looked at Baidu last year, but found their AI technology lacking for Apple’s standards.
This move is significant for Apple, especially after facing a tough year in China in 2024 when it lost its spot as the leading smartphone seller. According to Canalys, Apple saw a 17% drop in shipments in China, allowing local brand Vivo to take the top spot. This partnership with Alibaba could be a strategic move to regain ground in this important market.