The long-awaited Apple Intelligence rollout in China is finally becoming clearer.
According to The Information, Apple has officially partnered with Alibaba to develop AI features for iPhone, iPad, and Mac users in China. Both companies have already submitted their AI development proposal to the Cyberspace Administration of China for approval.
This move comes at a critical time for Apple. In Q1 2025, iPhone sales in China dropped 11.1%, generating $18.51 billion in revenue. This marks the largest decline since Q1 2024, when sales fell by nearly 13%. Apple CEO Tim Cook partially attributed this drop to the lack of Apple Intelligence in China. 
Although Apple announced that iOS 18.4 would introduce Chinese-language AI features in April, a full-scale AI rollout had remained uncertain—until now.
AI: The Next Big Shift in Smartphones?
Currently, AI features are enhancements rather than deal-breakers when purchasing a phone. However, their impact on daily usage is growing.
People won’t buy a phone for a single AI feature, but as AI becomes an integral part of daily life, devices without advanced AI could feel outdated.
With the rise of AI Agents, smartphones are evolving from communication tools into intelligent assistants. If AI stops being a collection of features and instead functions as a seamless, evolving system, it could redefine how we interact with our devices.
For Apple, bringing AI to China is no longer optional—it’s urgent.
Why Did Apple Reject Baidu & DeepSeek?
Before selecting Alibaba, Apple evaluated multiple Chinese AI firms in a lengthy selection process.
As early as 2023, Apple reportedly tested models from:
Why Not Baidu?
Baidu was initially Apple’s top choice, but its model development fell short of Apple’s technical standards, causing the deal to fall through.
Why Not DeepSeek?
Despite gaining recognition with DeepSeek-V3 and R1, Apple found that DeepSeek lacked the workforce and service experience required to support a major client like Apple.
“Apple needs a partner with enterprise-level reliability,” said AI analyst Wu Yanjun. “It’s not just about delivering a product—it’s about long-term support, innovation, and meeting Apple’s high standards. Few Chinese companies can meet these expectations.”
Sources also indicate that Apple’s AI strategy in China is not exclusive to Alibaba.
“Apple is likely considering a multi-model approach, letting users choose their preferred AI provider,” Wu added. “This means the Alibaba deal is significant but not final—other AI vendors could still get a chance as the industry evolves.”
Why Did Apple Choose Alibaba?
The key reason behind Apple’s decision? Alibaba’s Qwen AI models.
Alibaba Cloud’s Qwen series has established itself as a leading AI model in the global developer community.
Qwen’s Dominance in Open-Source AI
Before DeepSeek-V3, Qwen was the most widely used Chinese AI model among developers worldwide.
According to Wu, a professor at the University of Science and Technology of China, Qwen’s early large-scale investment gave it an edge in stability and adaptability.
Even in the recent trend of replicating o1 models, Qwen remains a top choice.
For example:
- Stanford University researchers used Qwen-32B as a base model in their study on test-time scaling (s1).
- Using just 16 NVIDIA H100 GPUs, they fine-tuned it in 26 minutes, achieving results comparable to OpenAI’s o1 and DeepSeek R1 in math and coding tasks.
Shanghai Jiao Tong University researchers also trained a model called LIMO, using Qwen as the foundation. Despite using only 1% of the training data, LIMO achieved 94.8% accuracy on MATH benchmarks.
Even Waterloo University AI researchers noted that Qwen’s performance was difficult to replicate on other models, suggesting there’s something “magical” about its architecture.
Alibaba’s Advantage: Cloud Computing & Infrastructure
Beyond AI capabilities, Alibaba also offers Apple something equally crucial—cloud infrastructure.
As one of China’s largest cloud providers, Alibaba Cloud operates extensive data centers in China and the Asia-Pacific region. This ensures stable and efficient deployment of Apple’s AI services while complying with China’s regulatory framework.
Additionally, Apple values Alibaba’s global influence, regulatory compliance, and user privacy protections.
“Apple needs a partner with strong commercial reach and regulatory adaptability,” Wu explained. “Among China’s major AI firms, Alibaba stands out in this regard.”
Final Thoughts: Will This Deal Help Apple Win Back China?
Partnering with Alibaba gives Apple a strategic advantage in navigating China’s AI regulations while tapping into Qwen’s AI ecosystem.
However, it remains uncertain whether AI alone will help Apple regain market share in China. With Huawei’s comeback and rising consumer preference for domestic brands, Apple’s AI strategy could be a decisive factor in its long-term success.
