Apple Trains Custom AI Model For China With Alibaba's Help

Reuters reported that Apple trained a custom large language model for the Chinese market with technical support from Alibaba Group. The model is intended to power parts of Apple Intelligence when the suite reaches mainland China through an upcoming iOS update.

The arrangement would make Apple the first foreign company cleared by Beijing to offer a proprietary AI model in China, according to the report. Alibaba’s role connects Apple’s device and software ecosystem to a major domestic technology partner, while Chinese regulatory approval is central to the rollout.

Apple generated $416.2B of revenue in FY 2025, up 6.4% YoY, with a 46.9% gross margin and 26.9% net margin. The next markers are confirmation of the iOS release, the scope of the approved features, and evidence that the localized AI service improves device engagement or demand in China.