Apple secures Chinese AI approval through Alibaba and Baidu deals
Apple has gained regulatory clearance to launch its AI services in China via local tech giants, a crucial step to defend its $20.5 billion quarterly revenue in a fiercely competitive market.
China’s internet content regulator has approved Apple Intelligence for the Chinese market. The move ends a delay that kept the iPhone maker’s generative AI features out of the country since their 2024 debut.
To secure the green light from the Cyberspace Administration of China, Apple struck a deal to integrate Alibaba’s Qwen AI model into its operating systems, including iOS, iPadOS, macOS, and visionOS. Baidu has also confirmed it is working with Apple to develop these features for Chinese users, while the company is said to be exploring additional integrations with DeepSeek and ByteDance.
Alibaba confirmed the partnership to CNBC, stating its Qwen models would be "integrated into Apple Intelligence experiences." The company noted these integrations would involve AI capabilities like "text and image understanding and generation," though it did not provide a time frame.
For investors, the regulatory clearance is a critical development in Apple’s largest foreign market. In the second quarter, Apple generated $20.5 billion in sales in Greater China, a 28 percent increase from a year earlier.
The company recently regained the number two position in China’s smartphone market, a recovery aided by iPhone discounts during a recent shopping festival. Introducing competitive AI features is now essential to maintain that momentum against domestic rivals who have already integrated advanced artificial intelligence into their devices.
The partnership structure highlights the strict boundaries foreign tech firms face in China. Rather than using its own proprietary models, Apple must rely on domestic providers to meet local compliance standards. Previous reports indicated Apple had faced issues adapting its in-house models for Chinese customers, making these local alliances a necessity.
For European businesses and regulators, the move underscores how global tech companies must fracture their product strategies to navigate distinct digital borders. As Europe enforces its own AI regulations, Apple's Chinese compromise serves as a clear example of how market access often requires surrendering control over core technologies.
