Apple will reportedly collaborate with Alibaba to release ‘censored’ AI in China

iPhone maker has suffered declining sales in the country due to growing competition from local brands

Apple is reportedly planning to release a censored version of its anticipated artificial intelligence features in China in the middle of this year in collaboration with local tech giants like Alibaba and Baidu.

The Silicon Valley giant has been working to adapt its Apple Intelligence platform for China for a rollout expected as early as May, Bloomberg News reported, citing people familiar with the matter.

Apple’s share rose by about 2 per cent on Thursday after announcing its AI partnership with the Chinese giant Alibaba.

To ensure its AI models provide outputs filtered to comply with Chinese censorship, Apple is reportedly relying on local software makers Alibaba and Baidu.

A woman walks past a logo of the Apple store in Beijing (AFP via Getty Images)

China is the second biggest market for Apple after the US, but the iPhone maker has suffered declining sales in the country.

Apple’s iPhone sales in China dropped to 43 million units in 2024 from about 52 million the previous year. 

Analysts have flagged a rise in competition from local Chinese phone brands and Apple falling behind in the adoption of AI technology as potential reasons for the sales decline.

China has also come up with a powerful new AI model DeepSeek, becoming a strong competitor to American firm OpenAI’s ChatGPT platform.

The DeepSeek AI model’s responses to some user queries have also been observed to align closely with narratives spread by the Chinese Communist Party (CCP).

In light of these recent AI developments, Apple may need some alterations to its existing AI platform to be more competitive in China.

Currently, the Apple Intelligence platform offers three types of AI in the US, including the tech giant’s own features that run on its device, features powered by the company’s internet servers, as well as OpenAI tools running on Apple’s infrastructure.

While its phones may run their AI features as they do in the US, an additional layer of Alibaba’s software may censor material that the Chinese government objects to, according to Bloomberg.

For some user queries that require rewriting large chunks of text, Apple Intelligence computes a response using its connection to a secure cloud computing system that runs on Apple’s Mac chips.

In China, Apple may need a local Chinese partner company for its cloud computing AI features.

Complying with local Chinese laws isn’t new to Apple.

Last year, the tech giant was forced to remove Meta’s Threads app as well as WhatsApp, Telegram, and Signal messaging apps off its App Store in compliance with China’s demands.

“We are obligated to follow the laws in the countries where we operate, even when we disagree,” Apple said.

Apple’s compliance with Chinese rules is seen as part of its heavy reliance on the country for both manufacturing and sales.