DeepSeek has been at the center of frenzied interest in Chinese AI developers; even so, Apple is reportedly teaming up with Chinese tech giant Alibaba to produce new AI features for iPhones sold in China, according to The Information.

Apple has been keen to carve out a bigger piece of the smartphone market in China after a decline in recent years and is placing a bet on AI as the solution, and Alibaba might just be the partner to help produce appealing AI tools for its devices.

The potential decision to work with a Chinese company rather than simply deploying Apple Intelligence as it stands is not a complete surprise. Apple didn’t have much choice about finding a Chinese partner to get its AI tools approved by regulators. However, Alibaba isn't the expected partner, according to the report. Apple had apparently planned to work with Baidu before deciding that Baidu's AI models weren't quite what they wanted.

The company reportedly considered offerings from other Chinese AI developers, including e-commerce giant Tencent and TikTok owner ByteDance. Apple even considered teaming up with DeepSeek before its explosive debut in the U.S. However, according to the report, Apple ultimately ruled out DeepSeek because it simply didn’t have the workforce or experience to handle a deal of this scale.

Ultimately, Alibaba emerged as Apple's choice for a few reasons, according to the report. By far, the biggest is that Alibaba has access to a staggering amount of data on Chinese consumers. With insights into shopping, payments, and general digital behavior, Alibaba’s AI could help Apple offer more personalized and localized features to iPhone users in China. Beyond the regulatory demands, Alibaba could also help Apple stand out from its Chinese competitors. Huawei, in particular, has been ramping up its AI-enhanced smartphone sales for nearly a year, enticing those who might previously have bought iPhones.

iPhone Alibaba

Alibaba's involvement might speed up the approval process for AI features with Chinese regulators. Based on the report, Apple device owners in China might see some smarter Siri responses, improved search capabilities, and better personalization options appear on their devices as a result of the deal.

Apple has long been known for tightly controlling its ecosystem. This partnership would force Apple to open up a little and relinquish some of that control to embed Alibaba’s AI. It’s a necessary compromise to stay in the Chinese market, but it also raises questions about how regional differences will change Apple products.

For now, Apple’s immediate goal is simple: make iPhones in China feel as cutting-edge as their local competitors. With AI increasingly becoming a deciding factor for consumers, a potential partnership with Alibaba might be Apple’s best shot at staying relevant in one of the largest markets in the world.

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