Alibaba Group will supply generative AI technology to Apple for use in iPhones sold in China, marking a significant shift in the smartphone landscape. The partnership will see Apple utilizing Alibaba's on-device AI models, with a layer capable of censoring content for the Chinese government.
Alibaba , the Chinese tech giant, is set to supply its generative AI technology to Apple for use in Chinese iPhones. This collaboration, revealed by Alibaba Group Chairman Joe Tsai, marks a significant shift in the smartphone landscape, particularly in China . Tsai stated during an event that Apple will utilize Alibaba 's technology for its on-device AI models, specifically as a layer capable of censoring certain materials and information for the Chinese government.
Alibaba's role will extend beyond providing the core AI technology. The company will be able to address requests from the Chinese government for updates to Apple's AI models, and Apple will comply by disabling outdated AI features on user phones until they update their devices to remove prohibited content. These modifications will apply exclusively to iPhones sold within China and will not affect devices purchased elsewhere. However, Apple Intelligence will not function within China, even on devices intended for sale in other regions, once the user changes their location to mainland China.Tsai emphasized that Apple engaged with several companies in the region for its AI needs, including DeepSeek. While Alibaba will be the primary AI partner in China, Bloomberg reports that Apple will also collaborate with Baidu for specific features like Visual Intelligence, which allows users to find online information by scanning items with their phone. For AI features demanding additional processing power and requiring external server access, Apple is likely to partner with local companies as well. Bringing Apple Intelligence to Chinese iPhones is a strategic priority for Apple, as China represents its second-largest market. However, the company faces challenges due to declining sales as customers increasingly favor local brands offering AI-enabled devices. In the last three months of 2024, Apple's sales in China plummeted by 11.1 percent, highlighting the urgency for the company to integrate AI capabilities into its products to remain competitive in this crucial market
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