Apple Built a Custom AI Model for China With Help From Alibaba

BEIJING —

Apple has built its own artificial intelligence model for the Chinese market, and it had help from an unlikely partner: Alibaba Group, one of China's biggest tech companies. Reuters reported the news, citing three unnamed people familiar with the matter, and it was also reported by The Verge and Japan Times.

The large language model was developed and trained with Alibaba's support, according to Reuters. That marks a real shift for Apple in China. Until now, the company has leaned on AI models built by Chinese firms to power generative AI features on iPhones and other devices sold there, since American models such as OpenAI's ChatGPT and Anthropic's Claude, which Apple uses alongside its own technology elsewhere, aren't allowed to operate in the country.

Building its own model gives Apple more control over how its AI features work in China, a market where the iPhone faces stiff competition from domestic phone makers. It also helps the company navigate Beijing's strict rules on AI, which require any model to be registered with and cleared by government regulators before it can reach the public. If the arrangement holds, Reuters reported, Apple would become the first US company approved to offer its own proprietary AI model in China.

A rollout years in the making

The custom model is tied to Apple's long-delayed plan to bring Apple Intelligence, its on-device AI system, to iPhones in China. Apple registered the service with China's cyberspace regulator last month, clearing a major hurdle, and people familiar with the matter told Reuters the rollout should happen in the coming months, after an update to iOS.

The partnership is notable given how strained the broader relationship between Washington and Beijing has become over AI and chip technology. A major American tech company training a proprietary model with direct support from a Chinese firm cuts against that trend, even as both companies stand to benefit: Apple gets a path into a huge market it has otherwise struggled to serve with cutting-edge AI, and Alibaba gets a marquee partner for its AI ambitions.

Apple did not respond to The Verge's request for comment on the report. Neither Apple nor Alibaba has publicly confirmed the partnership or said when the China-specific model might launch alongside Apple Intelligence.