Apple and Alibaba Built a Custom AI Model for China, Report Says
A cross-border partnership between two of the world's biggest tech companies could make Apple the first US firm to offer its own approved AI model in China.
Key points
- Apple reportedly trained a custom AI model with Chinese tech giant Alibaba for the Chinese market, according to Reuters.
- Apple registered its on-device AI service with China's internet regulator last month, clearing a required government hurdle.
- The partnership would make Apple the first US company approved to offer a proprietary AI model inside China, per the Reuters report.
- Apple Intelligence, the company's suite of AI features built into its devices, could launch in China within months.
Apple has quietly built a custom AI model tailored for Chinese users, developed in partnership with Alibaba, one of China's largest technology companies. Reuters first reported the arrangement, citing three unnamed sources familiar with the deal.
This is a notable shift. Until now, Apple has relied on pre-existing Chinese AI models to bring generative AI, meaning AI that can write, summarise and respond in natural language, to iPhones sold in the country. That was largely because the Western models Apple uses elsewhere, including OpenAI's ChatGPT, are not available in China.
Why does Apple need a special model for China?
China requires every AI model to be registered with and approved by the government before it can be offered to the public. No US company has previously received approval for its own proprietary AI model there.
Apple officially registered its on-device AI service with China's Cyberspace Administration, the government body that oversees internet and AI regulation, last month. That registration clears the main regulatory barrier to rolling out Apple Intelligence, Apple's branded collection of AI features, to Chinese iPhone users.
Sources told Reuters the launch should happen in the coming months, following an update to iOS, the operating system that runs iPhones and iPads.
What does this mean for people in China who use iPhones?
Chinese iPhone users could soon get AI features that the rest of the world has had access to since late 2024. Those features include writing assistance, photo editing tools and a smarter version of Siri, Apple's voice assistant.
Because the model was built specifically for the Chinese market, it should also be designed to meet local content rules, which require AI outputs to align with government guidelines.
For Apple, the stakes are practical. China is one of the company's largest markets, and it has lost ground to domestic rivals like Huawei in recent years. Offering competitive AI features could matter to buyers choosing between phones.
Apple did not respond to a request for comment from The Verge.
Common questions
Is this the same AI that Apple uses in other countries?
No. In the US, UK and other markets, Apple Intelligence connects to OpenAI's ChatGPT for some tasks. That service is blocked in China, so Apple and Alibaba built a separate model designed to work within China's regulatory system.
Does this mean my iPhone data goes to Alibaba?
Apple has not confirmed the deal or released technical details, so the exact data arrangements are not yet public. Apple has generally emphasised on-device processing, meaning the AI runs on the phone itself rather than sending data to external servers, as a privacy feature. Whether that applies fully in China remains unclear.
