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AI News Apple Is Partnering with Alibaba to Bring AI Features to iPhone Users in China
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Apple Is Partnering with Alibaba to Bring AI Features to iPhone Users in China
Apple is partnering with Alibaba to launch artificial intelligence features for iPhone users in China, according to a report on Tuesday citing a person with direct knowledge of the matter.
This development could remove uncertainty over Apple's AI strategy in China, where it has been losing market share to domestic competitors, including Huawei, which has gained a significantly larger share since last year.
Apple shares rose 1.5% in early trading, while Alibaba's listed shares climbed 2.6%.
The report said Apple had chosen Baidu as its main partner last year, but the Chinese company's progress in developing Apple Intelligence models had not met its standards.
Subsequently, Apple considered models developed by TikTok-parent ByteDance, Alibaba, and DeepSeek. Apple ultimately passed over DeepSeek because its team lacked the necessary manpower and experience to support a large client like Apple.
Apple and Alibaba did not immediately respond to requests for comment from Reuters.
The report said the companies have submitted the AI features they are jointly developing for China for approval from Chinese cyberspace regulators.
Launching AI tools is critical, as iPhone sales declined during the holiday quarter — typically Apple's biggest sales period — due to the lack of AI features, which have been a key selling point of its latest devices.
The company forecasts strong sales growth for the current quarter, and Fanning hopes iPhone demand will rebound.
The source said the main reason Apple decided to partner with Alibaba was driven by the e-commerce giant's massive personal data on users' shopping and payment habits, which can help train its models and provide more customized services.
Alibaba has the strongest overall capabilities among the top players in terms of model capabilities, engineering capabilities, and computing power conditions. Although DeepSeek's model capabilities are strong, computing power and customer maintenance are its shortcomings.
