Alibaba Group reached a deal with Apple to develop AI features for iPhones sold in China, a major win for the Chinese internet and e-commerce giant and a disappointment for local search giant Baidu, Bloomberg reported.
The vendor and Alibaba reportedly submitted AI features for approval to China’s cyberspace regulator. Local regulators require companies to secure approval before launching generative AI (genAI) services.
Apple Intelligence currently does not operate on iPhones sold in mainland China.
Alibaba is ranked as one of the top AI players in China after its latest Qwen model scored better than Meta Platforms’ Llama and DeepSeek’s V3 model in various tests, Bloomberg stated.
Nearly a year ago, Apple reportedly held preliminary discussions with Baidu about using its genAI technology soon after rival handset supplier Samsung agreed to use the company’s AI chatbot for its Galaxy S24 flagship series in China.
Counterpoint Research director Marc Einstein told Mobile World Live Apple needs to take the offensive as it lacks an AI product in the Chinese market, where it faces increased competition, in particular from a revitalised Huawei.
“Apple also would be wise to develop a local partnership with Baidu in the midst of geopolitical tensions,” Einstein added.
