Apple Intelligence, the iPhone maker’s generative AI product, is coming to China. On Wednesday, Reuters reported that China’s regulator, the Cyberspace Administration of China, had approved Apple’s AI services in the country based on a deal to integrate Alibaba’s Qwen AI model into Apple’s operating systems, including iOS, iPadOS, macOS and visionOS.
The partnership was rumored to be in the works last year and is a significant step for Apple’s AI ambitions in key markets. In the second quarter, Apple’s sales in Greater China rose 28% to $20.5 billion. Apple has also regained its No. 2 position in China’s smartphone market after discounts on its iPhone lineup were offered at a recent shopping festival.
Before partnering with Alibaba, Apple was reportedly considering a partnership with Baidu, but faced problems adapting its model to Chinese customers. Integration with models from DeepSeek and ByteDance was also considered, the report claims. This has delayed the introduction of Apple Intelligence features to the Chinese market, which are set to debut in 2024.
Alibaba confirmed its news in a statement to CNBC, saying Qwen “will be integrated into the Apple Intelligence experience,” but did not say when. It also said the integration will include AI capabilities such as “text and image understanding and generation.”
Alibaba’s U.S. shares rose 4% in pre-market trading on news of the acquisition and are now up more than 6% as of press time.
