Bloomberg: Apple to rely on local partners Alibaba and Baidu for AI integration in China

Apple is making significant strides to bring its AI features to China, with plans to launch the updated Apple Intelligence platform by mid-2025, potentially as early as May. 

This effort, according to Bloomberg, is a complex undertaking that involves both software adjustments and reliance on local Chinese partners, due to regulatory challenges in the region, Caliber.Az reports.

Apple’s push to integrate its AI technology in China comes as part of an effort to regain market share after a significant decline in iPhone sales. China, Apple’s largest market outside the US, has seen local brands like Huawei and Xiaomi make substantial inroads by leveraging their own AI features. As part of its strategy, Apple has enlisted Chinese tech giants Alibaba Group and Baidu Inc. to adapt its AI systems for local use.

Alibaba, a major player in China’s e-commerce and technology landscape, has been tasked with helping Apple modify the on-device AI models that run on iPhones, iPads, and Macs. The company will integrate its own software to ensure that the AI can filter content according to the Chinese government’s strict censorship rules. This means that certain content and features available in other markets may not be available to users in China, and users may not be aware of the content being censored.

Baidu, often referred to as China’s version of Google, will play a secondary role by managing other key AI features, including Visual Intelligence, a new capability that allows iPhones to scan physical items and pull up relevant information from the web. 

In the US version of Apple Intelligence, OpenAI’s technology powers similar features, but in China, Apple’s system will be more reliant on local technology. Baidu’s involvement in features like Visual Intelligence is key, as Baidu has a strong relationship with Apple and has been the default search engine in Safari for Chinese users since 2014.

Apple's approach to AI in China differs from its strategy in other markets, as it will use only local on-device models in the country. The US version of Apple Intelligence typically combines on-device AI, cloud-powered AI, and OpenAI chatbot capabilities. In China, however, the AI system will be designed to function entirely within the country’s regulatory framework. As a result, the AI models will be regularly updated to comply with Chinese content guidelines, with Apple temporarily disabling certain features on devices that have outdated models or prohibited content.

The integration of AI features in China presents significant logistical challenges. Apple already uses a system called Private Cloud Compute to handle sensitive data, but this system is unlikely to operate in the same way in China. Instead, Apple will rely on local partnerships, including Alibaba’s extensive AI capabilities and the state-affiliated GCBD, which operates iCloud services in China. Alibaba’s chairman, Joe Tsai, recently confirmed that his company is one of the select partners working with Apple on this project, noting that Apple had been “very selective” about its AI collaborators.

Apple’s efforts to navigate the Chinese market and meet the local regulatory requirements underline the importance of the region to the company’s global strategy. The upcoming launch of iOS 18.4 is expected to include support for Chinese language updates, but a full deployment of the localized AI platform will likely come later, with the first version of the platform expected to launch in May.

By Tamilla Hasanova