Technology
By Sydney TheCMO
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A Year of Stumbles Before the Alibaba Deal. Apple's AI division had a rough year before any of this came together.
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Why Alibaba Makes Sense as the Local Partner. Partnering with Alibaba isn't just about technology.
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What's Actually at Stake. China is one of the biggest smartphone markets in the world.
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Apple is going into China's AI market with a partner. Alibaba is that partner, and the two companies are now building a customized AI model aimed at getting Apple Intelligence…
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The deal didn't come out of nowhere. Alibaba Chairman Joe Tsai confirmed in February 2025 that Apple had talked to several Chinese firms before landing on Alibaba as its…
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Apple's AI division had a rough year before any of this came together. Back in January, Apple said its next-generation Foundation Models would move to Google's Gemini — a pretty…
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Then in May, Apple settled claims for $250 million. The accusations were blunt: iPhone buyers were misled about AI features that simply weren't there at launch.
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And in June, Apple rolled out a revamped Siri AI — one that can apparently handle more sophisticated tasks like conversation and image analysis.
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Partnering with Alibaba isn't just about technology. It's about navigating a regulatory environment that's stopped every major Western AI product cold.
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Alibaba brings local market knowledge, infrastructure, and a relationship with Chinese regulators that Apple simply doesn't have on its own.
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Related: Bank Leumi and Galaxy Digital Team Up to Bring Bitcoin, Ether, and Solana to 25% of Israeli Crypto Users
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The iOS update that would bring Apple Intelligence to Chinese iPhones is coming, though Apple hasn't given a specific date.
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China is one of the biggest smartphone markets in the world. Apple can't treat it as secondary, especially when local rivals are moving fast on AI.
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The $250 million settlement stung. The Gemini pivot raised eyebrows. But the Alibaba deal is probably the most consequential move Apple has made on AI in the past year — at least…
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And the stakes aren't small. If the iOS update rolls out and Apple Intelligence lands well in China, it changes the competitive picture significantly.
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