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[TECHNOLOGY] · China · 84 sources

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Apple develops proprietary AI model for China with Alibaba support

Apple is developing a proprietary large language model specifically for the Chinese market, moving away from its previous strategy of relying solely on third-party local models. This initiative, supported by Alibaba Group, aims to bring Apple Intelligence to Chinese users via an upcoming iOS update. The move follows regulatory clearance from the Cyberspace Administration of China and could make Apple the first foreign company permitted to offer its own proprietary AI model in the country.

To comply with local requirements, Apple plans to integrate its model with Alibaba’s Qwen and technology from Baidu. This dual-track strategy allows Apple to maintain control over the user experience while navigating China’s strict regulatory landscape. This development is seen as a critical step for Apple to defend its market share against local competitors like Huawei, which already offer integrated AI features.

Separately, Apple is reportedly negotiating multi-year, usage-based licensing deals with news publishers. The company is considering a nine-figure budget to compensate media outlets for providing real-time, accurate information to improve Siri’s performance and reduce AI hallucinations.

Entities

Alibaba · Alibaba Group · Apple · Baidu · Cyberspace Administration of China · Gemini · Google · Huawei · News Corp · OpenAI · Siri · The Wall Street Journal

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