Alibaba’s AI to power iPhones in China amidst regulatory hurdles

BEIJING: Apple will integrate Alibaba’s artificial intelligence (AI) technology into iPhones sold in China, according to Alibaba Chairman Joseph Tsai.

This partnership positions Alibaba as a key player in China’s competitive AI landscape and allows Apple to navigate local regulations that require foreign companies to collaborate with domestic firms for AI services, Bloomberg reported.

The deal, reportedly contributing to a surge in Alibaba’s stock price, signifies a major win for the e-commerce giant as it competes with other tech companies like Baidu in the rapidly evolving AI market. Baidu recently made its AI chatbot free to increase its market share.

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While Apple has partnered with DeepAI globally for AI features like ChatGPT, Chinese regulations necessitate a local partner. Tsai indicated that this requirement is likely to remain in place for the foreseeable future. Although he confirmed the partnership with Apple, he did not specify if the deal will be exclusive, with Alibaba being the only AI provider for Apple in China.

This alliance could prove crucial for Apple as it faces increasing competition from domestic rivals like Huawei, which are already offering AI-enhanced smartphones in the Chinese market. The partnership with Alibaba would enable Apple to revive sales in the region and offer a more comprehensive suite of AI-powered features to its Chinese customers.