The Information reported in a Tuesday publication that the American technology company Apple Inc. has opted to contract with the Chinese Alibaba Group Holding Ltd. instead of the emerging AI company DeepSeek to develop AI features for iPhones in China, according to two sources from the newspaper. According to the report, sources familiar with the matter claimed that Apple had previously tested AI models offered by Baidu, Tencent, ByteDance, and Alibaba, but specifically overlooked DeepSeek due to a lack of resources needed to support a major client like Apple. The newspaper's sources clarified that the massive consumer data held by Alibaba, particularly from its e-commerce and payment business database, played a key role in Apple's decision to contract with the Chinese tech giant. Additionally, another source for the newspaper, who is familiar with this decision, stated that this move by Apple comes as an attempt to signal compliance with Chinese regulations that require the development of local AI models and as part of its strategy to boost declining sales in the region.
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