Apple rejects DeepSeek in search for AI partner in China, moves toward Alibaba

Apple is making strategic moves to bring Apple Intelligence to its devices in China, but its search for a local AI partner has been anything but straightforward.

According to a recent report from The Information, the company has been carefully evaluating potential collaborators, ultimately deciding against DeepSeek, a Chinese AI firm that has been making waves for its efficient and cost-effective models.

Despite DeepSeek’s technological advancements, Apple opted not to pursue a partnership with the company, a decision that comes as some governments impose restrictions on its software over privacy concerns. Instead, Apple has explored multiple alternatives, assessing AI models from some of China’s biggest tech players, including Alibaba, Tencent, and ByteDance.

The selection process has been critical for Apple, as regulations require it to work with a domestic AI provider to integrate Apple Intelligence features into its products in China. After considering several options, the company appears to be advancing discussions with Alibaba, with both companies reportedly submitting AI features for regulatory approval.

With the demand for AI-powered features growing, securing the right partnership will be key to Apple's long-term success in one of its most important markets.