Apple Teams Up With Alibaba to Bring Apple Intelligence to China

Apple worked with Alibaba Group to develop and train an Apple artificial intelligence model specifically for the Chinese market, Reuters reported Friday (Aug. 14), citing unnamed sources.

Apple has previously used third-party models to power the AI features it offers in the iPhones and other devices it sells in China, according to the report.

Now, following the collaboration with Alibaba Group, the company plans to launch its Apple Intelligence suite of AI tools in China within months, the report said.

Having its own model tailored for China would give Apple greater control over the AI experience it offers in the market, per the report.

The offering would also make Apple the first foreign company to secure Chinese government approval to offer a proprietary model in the country, the report said.

Neither Apple nor Alibaba immediately replied to PYMNTS’ request for comment.

It was reported in February 2025 that a top executive from Alibaba said that his company had formed an AI partnership with Apple.

Alibaba Chairman Joe Tsai said at the time that the tech firm would work with Apple to help bring AI-powered iPhones to China.

“Apple has been very selective,” Tsai said. “They talked to a number of companies in China, and in the end, they chose to do business with us.”

“They want to use our AI to power their phones, so we’re very fortunate and extremely honored to be able to do business with a great company like Apple,” Tsai added.

It was reported in December that smartphone companies in China were promoting apps to help customers switch from Apple’s iPhone and that this signaled a bid by the companies to capture market share while Apple struggled to debut AI offerings in the country’s massive smartphone market.

However, in March it was reported that Apple was enjoying a sales boost in China even as the country’s smartphone market was seeing a downturn. The report attributed Apple’s gains to eCommerce discounts, the fact that its base iPhone 17 model qualified for government subsidies and the fact that Apple’s “strong control” of its supply chain left it better positioned to absorb the cost of memory chips and keep prices steady.

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