Apple Partners with Alibaba to Develop AI Model for China Market

Key Developments

• Apple developed a large language model for China in collaboration with Alibaba, according to Reuters.
• The partnership positions Apple as the first foreign entity permitted to operate a proprietary AI model within China.
• Apple Intelligence is scheduled to launch on Chinese iPhones through an upcoming iOS update.

Apple has trained its own AI model for China with Alibaba’s assistance as it moves to introduce Apple Intelligence to Chinese users, Reuters reported.

According to three sources familiar with the arrangement, Reuters stated that China’s Cyberspace Administration of China registered Apple’s generative AI service last month, clearing a key regulatory barrier that has previously prevented OpenAI’s ChatGPT and Anthropic’s Claude from operating in the country.

Alibaba Chairman Joe Tsai confirmed the agreement in February 2025, stating that Apple evaluated multiple Chinese firms before selecting the partnership. “They talked to a number of companies in China,” Tsai noted. “In the end they chose to do business with us.”

Apple plans to integrate its AI model with Alibaba’s Qwen technology and Baidu’s systems, though the specific roles of each platform remain undefined. The company’s branded AI initiative, Apple Intelligence, is expected to reach Chinese iPhones via an iOS software update “in the coming months,” according to Reuters.

This development follows a challenging period for Apple’s artificial intelligence division.

In January, the company announced its next-generation Foundation Models would rely on Google’s Gemini rather than a proprietary system, citing delays and lukewarm user reception for Apple Intelligence.

In May, Apple settled a $250 million lawsuit alleging misleading marketing of AI features unavailable at product launch. The delays have left the company behind Chinese competitors like Huawei, which already offers devices with built-in AI capabilities.

June saw the unveiling of Siri AI, a conversational assistant capable of processing images and leveraging user context. Apple indicated the tool will enter beta testing later this year but remains inaccessible in China pending regulatory approval.

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