Apple, Alibaba Shares Jump After Reported AI Collaboration in China
Apple's AI features may soon arrive in mainland China.Apple has recently started collaborating with Chinese internet and e-commerce giant Alibaba Group to introduce new artificial intelligence feature
Apple's AI features may soon arrive in mainland China.
Apple has recently started collaborating with Chinese internet and e-commerce giant Alibaba Group to introduce new artificial intelligence features in China, according to sources familiar with the matter, as reported by The Information.
This strategic move is part of Apple's broader efforts to offer more compelling software features as it faces intensifying competition from domestic brands like Huawei and Vivo, which has contributed to a decline in its sales in the country.
Apple, Alibaba Shares Jump Over 1% Following AI Collaboration News, While Baidu Drops More Than 4%.
As part of this partnership, Apple and Alibaba have co-developed AI features specifically tailored for the Chinese market and have already submitted them for approval by China's cyberspace regulator. This development signals significant progress in their collaboration.
The partnership follows Apple's testing of AI models from prominent Chinese developers since 2023. Initially, Apple selected Baidu as its primary partner, but the progress in developing the Apple Intelligence model did not meet Apple's expectations, leading to obstacles in their collaboration. As a result, Apple began considering other options, including models developed by Tencent, ByteDance, Alibaba, and DeepSeek.
After evaluating these alternatives, Apple ultimately decided to move forward with Alibaba's AI capabilities, discarding DeepSeek's model due to concerns over the company's ability to support major clients like Apple. This shift highlights the evolving dynamics of Apple's AI strategy in China as the company seeks to enhance its offerings in the face of local competition.
Apple used ChatGPT as its AI partner in the U.S., but regulatory concerns have made ChatGPT unavailable in China. The collaboration with Alibaba may clear these hurdles, and the AI features could be delivered in China as soon as April.
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