Apple partners with Alibaba for China AI initiative, replaces DeepSeek

Apple has partnered with Alibaba to launch its Apple Intelligence platform in China, following challenges in collaborating with Baidu and considering other options like DeepSeek and ByteDance. This move is crucial as the absence of Apple Intelligence has contributed to an 11% decline in iPhone sales in China, a significant market for the company. Local competitors, particularly Huawei, have been quick to capitalize on this gap, enhancing their AI offerings. Apple's CEO Tim Cook has acknowledged the impact of missing AI features on sales, and the partnership is seen as essential for boosting Apple’s competitive edge in the region. The collaboration comes ahead of the upcoming launch of the fourth-generation iPhone SE, which is expected to drive sales in China and India. Apple previously integrated OpenAI's ChatGPT into its services in the U.S., highlighting its broader AI strategy.