Apple and Alibaba: Qwen AI Launches in China After Approval

Apple and Alibaba: AI Qwen Arrives in China After Approval

Apple Intelligence, the generative AI offering from the iPhone maker, is coming to China. On Wednesday, Reuters reported that the Chinese regulator, the Cyberspace Administration of China, has approved Apple's AI services in the country, following an agreement to integrate Alibaba's AI Qwen model into Apple's operating systems, including iOS, iPadOS, macOS, and visionOS.

This agreement, which was under discussion last year, marks a significant step for Apple's AI ambitions in a key market. In the second quarter, Apple's sales in mainland China rose by 28% to reach $20.5 billion. Apple has also recently regained the second position in the smartphone market in China after a shopping festival offered discounts on the iPhone lineup.

Before collaborating with Alibaba, Apple reportedly explored a deal with Baidu, but faced challenges in adapting its models to Chinese customers. The company also considered integrations with DeepSeek and models from ByteDance, according to reports. This led to delays in the launch of Apple Intelligence features, which are set to debut in 2024 in the Chinese market.

Alibaba confirmed this news to CNBC in a statement, indicating that Qwen would be "integrated into Apple Intelligence experiences," but did not provide a timeline. The company also specified that the integrations would involve AI capabilities such as "text and image understanding and generation."

Alibaba's shares in the United States rose by 4% in pre-market trading following the announcement of the agreement and are now up by more than 6% at the time of publication.