Apple has made a strategic decision to partner with Alibaba to introduce its Apple Intelligence platform in China. This move comes after the tech giant explored potential collaborations with AI startup DeepSeek and ByteDance, but ultimately chose Alibaba as its preferred partner.
Initially, Apple had earmarked Baidu as its lead partner for integrating Apple Intelligence into devices in China. However, complications arose around adapting Baidu’s AI models, prompting Apple to seek an alternative. Now, with Alibaba on board, Apple aims to ensure the seamless integration of its flagship AI feature in one of its largest markets.
This decision comes at a critical time for Apple, especially as the company faces an 11% dip in iPhone sales in China, which Apple CEO Tim Cook attributed in part to the absence of the Apple Intelligence feature. Meanwhile, local competitors, notably Huawei, have aggressively capitalized on this gap, pushing their own AI-powered devices into the market.
China’s AI landscape is growing increasingly competitive, particularly since the launch of ChatGPT in 2022. The market is teeming with innovation from the “Six Tigers”—a group of leading AI developers such as Stepfun, Zhipu, Minimax, Moonshot, 01.AI, and Baichuan—as well as up-and-coming contenders like DeepSeek and ModelBest.
Apple’s latest move also coincides with the highly anticipated release of the iPhone SE (4th Gen), a budget-friendly device aimed at driving sales in emerging markets like China and India, which together represent the world’s two largest smartphone markets. This partnership with Alibaba is expected to bolster Apple’s performance, reigniting its competitive edge in China’s fiercely contested tech landscape.
In the U.S., Apple has already taken steps to incorporate OpenAI’s ChatGPT into Siri as part of its Apple Intelligence rollout, showcasing its ambition to make AI an integral part of the iPhone experience. Going forward, Apple is open to forging additional partnerships with major AI providers, including Google’s Gemini, to further enhance its AI capabilities.
By joining forces with Alibaba, Apple is positioning itself to shape how AI-driven technologies will influence and interact with users in China—and potentially across the globe—through their iPhones in the coming years. This collaboration signals a new chapter for Apple’s AI journey, as it aims to stay competitive in one of the world’s most dynamic tech markets.
