Apple and Alibaba build custom AI model for China

Apple has reportedly partnered with Chinese tech giant Alibaba to train a custom AI model for the Chinese market, according to Reuters. This marks a rare US-China collaboration amid growing geopolitical tensions. The China-focused large language model was developed with Alibaba's support, a strategic shift from Apple's previous approach of relying on domestic Chinese models to deliver generative AI on its devices there. By building a custom model, Apple gains more control over its products in the fiercely competitive Chinese smartphone market, where US models like OpenAI's ChatGPT are unavailable.

Apple is preparing to launch Apple Intelligence in China after registering the on-device generative AI service with China's cyberspace regulator last month, clearing a major regulatory hurdle. Sources familiar with the matter say the rollout will happen “in the coming months after an update to its iOS operating system.” If approved, Apple would become the first US company to offer a proprietary AI model in China, according to Reuters. This partnership gives Apple a significant advantage in navigating Beijing's strict AI regulations, which require all models to be registered and cleared by the government before public release. Apple did not respond to The Verge's request for comment, but the move signals a bold bet on localization as AI competition between the US and China intensifies.