Apple Brings AI to China Through Alibaba Partnership, Regulator Gives Green Light

Apple's generative AI platform, Apple Intelligence, is finally cleared for launch in China after receiving approval from the country's internet regulator. The Cyberspace Administration of China signed off on the service following a deal that integrates Alibaba's Qwen AI model into Apple's operating systems, including iOS, iPadOS, macOS, and visionOS, Reuters reported Wednesday.

The partnership, rumored since last year, gives Apple a foothold in a critical market where it recently saw a rebound. Sales in Greater China jumped 28% to $20.5 billion in the second quarter, and Apple reclaimed the No. 2 spot in China's smartphone market after a shopping festival drove discounts on iPhones. Earlier, Apple explored working with Baidu but struggled to adapt its models locally, and also considered DeepSeek and ByteDance's offerings, causing delays in bringing Apple Intelligence - first launched in 2024 - to Chinese users.

Alibaba confirmed the deal to CNBC, stating Qwen will be "integrated into Apple Intelligence experiences," with capabilities including text and image understanding and generation, though no timeline was provided. Investors responded positively: Alibaba's U.S. shares rose 4% in pre-market trading and were up over 6% at the time of publication.

Source: TechCrunch