Observed Signal · Feb 13, 2025 · Partnership · Source: Trending Topics · Impact: 4/5 · Sentiment: Positive
Apple Selects Alibaba's Qwen AI Models for China, Passes on DeepSeek
Chinese tech group Alibaba will supply AI technology for Apple smartphones in China, Alibaba chairman Joe Tsai confirmed at a conference in Dubai. Apple had held talks with Baidu, ByteDance and Tencent, and also tested DeepSeek before choosing Alibaba. China's strict approval process for public AI models makes a local partner necessary. While Apple offers ChatGPT/OpenAI integration in the US and soon Europe, it needs a local AI provider for the Chinese market. Alibaba's Qwen models are considered among China's best after DeepSeek, and Alibaba's cloud infrastructure is seen as capable of handling the expected high query volume. The latest Qwen2.5-Max is proprietary and benchmarked against DeepSeek V3 and Llama 3.1. The news boosted Alibaba's Hong Kong-listed shares, which rose more than 40 percent since the start of the year.
Apple's choice of Alibaba's Qwen AI models for its China iPhones determines which AI provider powers a massive user base, impacts the competitive AI landscape in China, and highlights how regulatory constraints shape AI distribution.
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Key Takeaways & Evidence Grounding
- Apple will use Alibaba's Qwen AI models for AI features on iPhones in China, confirmed by Alibaba chairman Joe Tsai.
- Apple previously held talks with Baidu, ByteDance and Tencent, and also tested DeepSeek before selecting Alibaba.
- China requires publicly accessible AI models to pass an approval and testing process, pushing Apple to work with a local partner.
- Alibaba's Qwen2.5-Max is a proprietary model positioned against DeepSeek V3 and Llama 3.1.
- Alibaba's Hong Kong-listed shares rose more than 40 percent since the start of 2025 and 17 percent in February.
Connected Companies & Entities
7 Entities mapped“Apple had previously held talks with several Chinese tech companies, including Baidu, ByteDance and Tencent, and also tested DeepSeek....”
“Apple also tested DeepSeek before deciding on Alibaba; Alibaba's models are considered the best in China apart from DeepSeek....”
“Chinese tech group Alibaba will supply the AI technology for Apple smartphones in China, confirmed by Alibaba chairman Joe Tsai....”
“Apple had previously held talks with several Chinese tech companies, including Baidu, ByteDance and Tencent....”
“Apple had previously held talks with several Chinese tech companies, including Baidu, ByteDance and Tencent....”
“Apple had previously held talks with several Chinese tech companies, including Baidu, ByteDance and Tencent....”
“In the US, Apple offers a ChatGPT/OpenAI integration and its own weaker AI models....”
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