Apple is taking a significant new step in its artificial intelligence strategy by developing a large language model specifically for the Chinese market, with support from Alibaba, according to people familiar with the matter.
The move represents a shift from Apple’s earlier approach of relying primarily on AI models developed by Chinese technology partners to power Apple Intelligence on devices sold in China.
Three people familiar with the situation said Apple has been training its own China-specific model with assistance from Alibaba. They requested anonymity because the work has not been publicly announced.
Apple and Alibaba did not immediately comment.
A different AI strategy for China
Apple’s approach to artificial intelligence differs significantly between China and other major markets.
In the United States and other markets, Apple has integrated its own technology with external AI models such as OpenAI’s ChatGPT. However, access to several leading U.S. AI services is restricted in China, making it difficult for Apple to use the same system there.
Instead, Apple has been working with Chinese technology companies to bring generative AI capabilities to its devices.
Developing its own model for China could give Apple significantly greater control over how Apple Intelligence operates, while allowing the company to tailor the technology to China’s regulatory requirements and local consumer preferences.
The strategy could become particularly important as Apple faces increasing competition from Chinese smartphone manufacturers such as Huawei, which have rapidly incorporated AI features into their devices.
Apple Intelligence prepares for China
Apple’s AI platform, Apple Intelligence, is expected to become available in China in the coming months following an iOS update, according to the sources.
The company recently cleared a major regulatory hurdle after China’s Cyberspace Administration of China registered Apple’s generative AI service.
That approval followed a lengthy review process and opens the door for Apple to introduce Apple Intelligence on Chinese iPhones for the first time.
The development is strategically important because China remains one of Apple’s most important international markets, while the company has faced increasing competition from domestic smartphone brands.
Partnership with Alibaba remains important
Although Apple is developing its own model, Alibaba continues to play an important role in the company’s Chinese AI strategy.
Apple and Alibaba’s partnership was first publicly confirmed in February 2025, when Alibaba Chairman Joe Tsai said Apple had selected the Chinese technology company to provide AI technology for iPhones sold in China.
The partnership was subsequently delayed as Apple worked to ensure that its AI services complied with Chinese regulations.
Alibaba’s involvement gives Apple access to local AI expertise and infrastructure while helping the U.S. technology company navigate China’s complex regulatory environment.
A rare U.S.-China technology collaboration
The development is notable beyond Apple’s business strategy.
If Apple’s proprietary China-specific AI model receives the necessary approvals, the company would become the first foreign company approved by Beijing to offer its own proprietary AI model in China, according to the sources.
That would represent an unusual example of cooperation between major American and Chinese technology companies at a time when Washington and Beijing remain locked in a broader dispute over advanced technology, artificial intelligence and semiconductor access.
The arrangement also demonstrates how international technology companies are increasingly being forced to develop different strategies for different markets as governments impose tighter controls over AI.
Apple faces intense competition
Apple’s AI push comes as the company tries to strengthen its position in China’s increasingly competitive smartphone market.
Chinese manufacturers have moved aggressively into AI-powered smartphones, offering features such as intelligent assistants, image-generation tools, translation and on-device productivity functions.
Huawei in particular has emerged as a major competitor, putting additional pressure on Apple to demonstrate that its devices can keep pace with the rapidly evolving AI ecosystem.
Apple’s China-specific AI model could allow the company to deliver a more competitive experience while maintaining greater control over its technology.
The Mac connection
Apple has already begun experimenting with Alibaba-powered AI features beyond the iPhone.
Last week, the company published a Chinese-language guide explaining how eligible Mac users in mainland China could connect Alibaba’s Qwen AI service to Siri and Apple’s Writing Tools.
The guide was later removed without an explanation, but the episode highlighted Apple’s efforts to integrate local AI services into its products while preparing its broader China strategy.
Alibaba’s U.S.-listed shares rose roughly 4% in premarket trading following news of Apple’s regulatory approval, reflecting investor expectations that the partnership could become an important part of China’s rapidly developing AI market.
A balancing act for Apple
Apple’s new strategy reflects the difficult balance facing foreign technology companies operating in China.
The company must satisfy China’s strict AI regulations while maintaining control over the technology powering its products. At the same time, it must compete against domestic smartphone manufacturers that have greater familiarity with the local regulatory and technology environment.
Developing its own China-specific model, while continuing to work with Alibaba, could give Apple a way to achieve both objectives.
