Alibaba Chairman Joe Tsai announced on Thursday that the Chinese tech giant will partner with Apple to integrate AI technology into iPhones sold in China. Speaking at the World Governments Summit in Dubai, Tsai confirmed that Alibaba had been selected after discussions with multiple companies in China.
“They talked to a number of companies in China. In the end, they chose to do business with us. They want to use our AI to power their phones,” Tsai said. “We feel extremely honored to do business with a great company like Apple.”
Apple has yet to respond to the announcement.
Apple’s AI Push in China
The partnership comes at a critical time for Apple, as iPhone sales in China declined during the holiday quarter—traditionally the company’s most profitable period. While Apple has introduced AI-powered features in other markets, strict Chinese regulations require collaborations with local companies to roll out such technologies within the country.
By working with Alibaba, Apple aims to enhance its AI offerings in China while ensuring compliance with government restrictions on foreign AI models.
Alibaba’s AI Momentum
Alibaba has emerged as a key AI leader in China, attracting investor confidence in early 2025. The company’s stock price has surged by more than 40% this year, reflecting strong market optimism about its AI advancements.
In January, Alibaba introduced an upgraded version of its Qwen 2.5 AI model, which outperformed DeepSeek-V3—a rival model that gained attention for its capabilities and affordability.
As Apple faces increased competition from local smartphone brands in China, the collaboration with Alibaba could help differentiate iPhones and boost sales by offering localized AI-powered features.
The partnership marks a significant step for both companies in advancing AI integration in China’s rapidly evolving tech landscape.
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