Apple has teamed up with Alibaba to bring its Apple Intelligence AI features to iPhones in China. The partnership was officially confirmed by Alibaba Group chairman Joe Tsai on Thursday, causing the company’s stock to surge to its highest level in three years.
Since China has strict regulations on AI models, Apple will integrate Alibaba’s Qwen model to power its AI features locally. This move aligns with government preferences for homegrown AI solutions, ensuring compliance while bringing advanced AI capabilities to Chinese iPhone users.
The partnership is a big win for both Apple and Alibaba. Apple previously pointed to the absence of Apple Intelligence in China as one reason for its weaker performance in the region last quarter.
There’s no word yet on when Apple Intelligence will launch in China, but Apple is betting on AI to help the iPhone reclaim the top spot from its current third-place position. Meanwhile, Apple will expand Apple Intelligence across Europe with iOS 18.4 in April, following strong iPhone sales in markets already using the AI features.
Tsai’s remarks at the World Governments Summit in Dubai mark the first time Apple and Alibaba have publicly confirmed their partnership.
“Apple has been very selective. They talked to a number of companies in China, and in the end, they chose to do business with us,” Tsai said, adding that the iPhone maker wants localised AI on its devices.
Earlier this week, The Information reported that Alibaba was likely to be Apple’s AI partner in China, shifting from its earlier claim that Baidu was the top choice.
