Apple Partners With Alibaba In AI Development To Expand Chinese Market, Chinese iPhones Will Be In ‘Alibaba AI’

Apple’s iPhone sold in China is expected to be equipped with an artificial intelligence (AI) model made by Apple and Alibaba.

U.S. IT media Deformation reported on the 11th (local time) that Apple is working with local IT company Alibaba to install AI functions on its devices such as iPhones in China.

Alibaba, which operates China’s largest e-commerce platform, is also leading the AI market along with Tencent and Baidu. Alibaba launched its new AI model “Qwen 2.5-Max” on March 29.

Alibaba has argued that the model outperforms Chinese AI startup DeepSeek’s AI model V3, as well as OpenAI’s GPT-4o and Meta’s Lamar 3.1 in all areas.

Deformation said it submitted an application for approval to regulators to install AI functions jointly developed by Apple and Alibaba on iPhones and other devices.

The cooperation between the two companies stems from China’s regulations. The Chinese government is demanding that domestic AI models be installed to sell smartphones in the country. Samsung’s Galaxy smartphones also include Baidu’s “Anniebot AI,” not Galaxy AI. Last year, Apple released the iPhone 16 series with Apple Intelligence, but such regulations have made it difficult to install AI functions in China.

Last year, Apple selected Baidu as a partner for AI model development, but it is reported that Baidu’s AI technology did not meet the standards.

Apple has also considered AI models such as Tencent, ByteDance (the parent company of TikTok), and Dipsyk. Dipsyk was not selected as Apple’s partner due to lack of manpower and experience needed to support large-scale customers, according to the report.

Apple chose Alibaba because it has secured vast amounts of e-commerce data. This is because Alibaba has vast amounts of data on users’ shopping and payment habits, which can help them train AI models and provide customized services.

Apple’s collaboration with Alibaba is expected to resolve months of uncertainty over its AI strategy, which was one of the reasons for iPhone sales in China.

“The iPhone 16 sold better in the market where Apple Intelligence is available,” Apple CEO Tim Cook said after the earnings announcement last month, suggesting that iPhone sales could recover when AI features are introduced in the Chinese market.

JENNIFER KIM

US ASIA JOURNAL

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