Apple has entered into a partnership with Alibaba to introduce Apple Intelligence AI capabilities to the iPhone in China. Joe Tsai, chairman of Alibaba Group, announced the collaboration on Thursday, resulting in a significant surge in the company’s stock price to a three-year peak.
In China, Apple Intelligence will leverage Alibaba’s Qwen model, aligning with the Chinese government’s preference for domestically-based AI solutions.
This agreement is a key advantage for both Alibaba and Apple, as Apple indicated that the absence of Apple Intelligence on iPhones in China contributed to its disappointing performance in the region last quarter.
While there’s no specific timeline for the launch of Apple Intelligence in China, the iPhone will need to recover from its third-place ranking to regain its top position, aided by competitive AI features. The rollout of Apple Intelligence will extend to additional regions in Europe with the launch of iOS 18.4 in April. The company reported an increase in iPhone sales during the holiday quarter in areas where Apple Intelligence was already available.
Tsai’s remarks at the World Governments Summit in Dubai mark the first public acknowledgment of the collaboration between Apple and Alibaba Group.
“Apple has been quite selective. They engaged with several companies in China, and ultimately, they decided to partner with us,” Tsai stated, noting that the iPhone maker aims to implement localized AI on its devices.
The Information revealed this week that Alibaba was anticipated to be Apple’s AI partner in China, following earlier reports suggesting that Baidu was the initial choice.
