Apple Inc. (NASDAQ: AAPL) has reportedly partnered with Alibaba Group Holding Ltd. (NYSE: BABA) to create an AI model specifically designed for the Chinese market. The AI model will fuel Apple's AI toolkit, Apple Intelligence, which is slated to debut in China in the coming months following an iOS update, Reuters reported on Friday. The rollout could coincide with new iPhone launches in September, according to previous reports.
Apple and Alibaba did not immediately respond to Benzinga's request for comments.
Apple Shifts Strategy
This is the first time that Apple is training its own China-specific AI model, rather than relying solely on local partners. This aims to bring generative AI features to Chinese iPhones, where ChatGPT and Claude are unavailable, according to the report.
This model will provide Apple with greater control over the AI experience in its most fiercely contested overseas market, where it has been losing traction to local competitors like Huawei.
Reuters also reported that earlier this month, Apple published, then deleted, a guide showing eligible Mac users in China how to connect Alibaba's Qwen AI with Siri and Writing Tools, potentially boosting its position in China's AI PC market.
Apple's strategy signifies a distinctive dual-track approach to AI implementation for a foreign company in China. This tactic could also aid Apple in circumventing the regulatory hurdles that have hindered many other U.S. tech firms in China. Moreover, it could position Apple as the first foreign company to receive Beijing's approval to offer a proprietary AI model in the country.
China Gives Approval After 2 Years
This development comes after Apple received Chinese regulatory approval for Apple Intelligence in July, ending a wait that began with the feature's launch in 2024. China's cyberspace regulator approved Apple's generative AI services, alongside AI offerings from Huawei, Xiaomi, Vivo and Oppo. Alibaba said its Qwen AI will be integrated into Apple Intelligence across iOS, iPadOS, macOS and visionOS for users in China.
China requires generative AI services to undergo registration and content compliance checks before public release. Apple Intelligence's brief appearance on Chinese iPhones in March had triggered greater regulatory scrutiny, though Apple has yet to announce an official launch date.
Meanwhile, in July, Alibaba also announced that Qwen3.8 Max-Preview, the most potent model in its Qwen family, is available through its Token Plan subscription service and its Qoder and QoderWork agentic platforms. The model, which boasts 2.4 trillion parameters, is considered comparable to leading frontier AI models, second only to Anthropic's Claude Fable 5.