Apple has teamed up with Chinese e-commerce giant Alibaba to develop artificial intelligence (AI) features for iPhones in China, a move seen as a strategic response to declining sales and growing local competition, according to The Information.
The partnership comes as Apple faces mounting pressure from Beijing, which requires foreign firms to collaborate with domestic companies for AI development.
Apple had initially selected Baidu as its primary AI partner but reportedly encountered challenges with the Chinese firm’s progress in meeting its standards, The Information reported.
This led Apple to explore other options, including Tencent, ByteDance, Alibaba, and AI start-up DeepSeek.
Alibaba’s involvement signals significant progress in Apple’s AI efforts for the Chinese market.
The two firms have already submitted their AI models to China’s cyberspace regulator, highlighting Apple’s commitment to complying with local regulations.
Apple’s AI-powered “Apple Intelligence” initiative has been slow to roll out globally, raising concerns among analysts.
However, CEO Tim Cook has maintained that AI enhancements are driving iPhone sales.
The company recently projected low-to-mid single-digit revenue growth for its fiscal second quarter, surpassing market expectations, according to Reuters.
With China remaining a crucial market for Apple, the Alibaba partnership marks a pivotal step in regaining lost ground and ensuring its AI features are well-integrated into iPhones sold in the country.
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