Apple has partnered with Alibaba to develop artificial intelligence (AI) features for iPhones in China, a move aimed at overcoming regulatory hurdles and boosting its lagging sales in one of its most important markets, according to a report by The Information.
The Cupertino-based company and Alibaba have submitted their co-developed AI features for approval by China's Cyberspace Administration, the report said, citing a source with direct knowledge of the matter. Apple, which has faced delays in launching Apple Intelligence features in China due to government restrictions, had previously explored collaborations with other Chinese tech firms, including Baidu, Tencent, ByteDance, and DeepSeek.
After initial plans to partner with Baidu were scrapped due to what sources described as shortcomings in Baidu's AI development, Apple evaluated models from several other companies before selecting Alibaba. DeepSeek was ultimately ruled out because its team lacked the manpower and experience needed to support a large-scale integration with Apple's ecosystem, the report added.
Apple has been struggling in China, where iPhone sales have faced increasing pressure from local rivals such as Huawei. The absence of AI-powered features, which have become a key selling point in the smartphone market, has only exacerbated its competitive challenges. Apple previously announced that Apple Intelligence support for Chinese users would arrive in iOS 18.4 this April, marking a crucial step toward AI integration in the region.
The partnership with Alibaba signals Apple's push to accelerate its AI ambitions in China while complying with government regulations that require foreign companies to collaborate with domestic firms on AI-related technology. Under these rules, foreign AI services must be developed and operated in conjunction with a China-based company to ensure compliance with local data security laws.
The extent of Alibaba's role in Apple Intelligence remains unclear, but the collaboration suggests Apple may be working with multiple Chinese firms to bring different AI capabilities to its devices. Apple Intelligence is a broad suite of AI-powered tools designed to enhance writing assistance, image generation, and Siri's capabilities.
While neither Apple nor Alibaba has publicly commented on the partnership, Apple's stock saw a nearly 1% gain in pre-market trading following the report's release.
