Apple’s Chinese AI partnership with Alibaba draws US concern

Apple remains betwixt a rock and a hard place. Required in China to work with a Chinese AI provider, the US government is apparently putting Apple under pressure to step back on such an arrangement, arguing that it may benefit Chinese AI research.

A rock. A hard place. A rock.

Following failed talks with Baidu, Apple has reportedly partnered with Alibaba to bring AI to iPhones in China. The alliance is intended to restore Apple’s declining sales in China and to overcome regulatory barriers. However, the partnership is being probed by the US for security.

Apple has been working on its Chinese partnership at least since last year. The company originally intended working with Baidu, but it wasn’t able to meet expectations.

As a result, Apple spoke with other Chinese AI developers, including Tencent, ByteDance, and Alibaba.

t’s a hugely important deal for the company as without its iPhone in will become less relevant in Apple’s second largest market. JP Morgan believes the partnership will help restore Apple’s fortunes there.

The companies have reportedly submitted the tech to local regulators for approval, but the plans are also being investigated by the Trump administration on grounds of national and data security.

The outcome of this matter will have major implications across the tech industry, as it effectively calls into question all kinds of international tech partnership and may impact innovation.

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