Apple Teams Up With Alibaba to Bring Apple Intelligence to China

Apple has partnered with Alibaba Group to develop and train an AI model specifically for the Chinese market, according to unnamed sources reported by Reuters on August 14. Apple previously relied on third-party models for AI features in its iPhones and other devices sold in China. Following this collaboration, the company plans to launch its Apple Intelligence suite of AI tools in China within months, giving the tech giant greater control over the AI experience in the market and making Apple the first foreign company to secure Chinese government approval for a proprietary model.

In February 2025, Alibaba Chairman Joe Tsai announced the partnership with Apple, stating that the company had chosen Alibaba to bring AI-powered iPhones to China due to their selectivity. The collaboration comes amid reports of Chinese smartphone companies promoting alternatives to Apple's iPhone to capture market share while Apple faces challenges in debuting AI offerings in the country's large smartphone market.

Despite a downturn in China's smartphone market, Apple has seen sales growth, attributed to eCommerce discounts, government subsidies for its iPhone 17 model, and its better position to absorb memory chip costs due to strong control over its supply chain.