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Since DeepSeek was launched, it has taken the AI market by storm. The rapid progress of DeepSeek prominently points out China’s advancement in AI technology, and Apple isn’t ready to let go of this opportunity to spread its AI market into China. Generally, China doesn’t allow Apple’s default AI features, so Apple needs the help of a local company to develop and incorporate AI for iPhones sold in the country. Hence, the deal with Alibaba happens.
It’s indeed the time of DeepSeek, but Apple still preferred another company as its AI partner in China. It's been a few weeks since DeepSeek launched its AI assistant, and it has already challenged the biggest AI companies like OpenAI for a tough fight.
On the one hand, its launch has wiped out billions of dollars from the world’s biggest stock markets. But on the other hand, it is causing tech enthusiasts and governments of different countries sleepless nights due to security concerns. Governments across the world are worried that this Chinese AI software may use user data to harm people.
Amidst this turbulent situation, the Cupertino-based company has cracked a deal with another Chinese tech giant to expand its market in China. Now that China is advancing in AI technology, Apple must incorporate necessary AI features for iPhone users in China, but that’s impossible without the help of a local developer. Therefore, the search was going on for a while and landed with Alibaba joining hands.
Apple is a partner of OpenAI for running its AI models on iPhones, but the problem is that China doesn’t allow OpenAI. Therefore, this iPhone company was forced to seek a local partner, and the reason behind choosing Alibaba was the strength and “cutting edge” capabilities of its Qwen AI model.
Apple has been in a long uncertainty regarding its AI policies in China. Because of the lack of a proper AI strategy, this U.S.-based company has lost loads of shares to the domestic companies in this country. So, development was required, and this search was going on for a while.
Last year, Apple selected Baidu as its main partner in developing and incorporating AI into iPhones. However, Baidu’s developing models for Apple Intelligence reportedly fell short in standard. Later, it tried models developed by Tencent, TikTok’s parent company ByteDance, Alibaba, and DeepSeek. None passed the test. In fact, this U.S. tech giant has bypassed DeepSeek for its less manpower and experience.
Finally, Alibaba passed the test, and as the reports say, these two companies have already submitted the proposed AI features to China's cyberspace regulatory commission for approval. This government approval is necessary before launching it in the market. Expectedly, Apple will again capture the Chinese market lost to domestic companies like Huawei.
