Apple has officially partnered with Alibaba to bring Apple Intelligence AI features to the iPhone in China. Alibaba Group chairman Joe Tsai confirmed the deal on Thursday, sending the Chinese firm’s stock price to a three-year high.
Apple Intelligence in China will rely on Alibaba’s Qwen model, satisfying the Chinese government’s preference for a China-based AI model.
The deal is a major boost for both Alibaba and Apple. Apple partially cited the lack of Apple Intelligence on iPhone in China as reason for the company’s subpar performance in the region during the last quarter.
No details yet on when Apple Intelligence can go live in China, but the iPhone will need to climb its way from third place to first place again with the help of competitive AI features. Apple Intelligence will expand to more regions across Europe with iOS 18.4 in April. The company says it saw iPhone growth during the holiday quarter in markets where Apple Intelligence was available.
Tsai’s statement at the World Governments Summit in Dubai is the first public confirmation of the deal between Apple and Alibaba Group.
“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.
The Information reported that Alibaba was expected to be Apple’s AI partner in China this week after previously reporting that Baidu was Apple’s choice.
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