Apple and Alibaba’s Chinese AI Deal Raises US Concerns

US authorities are scrutinizing Apple’s plan to offer Alibaba’s artificial intelligence (AI) on iPhones in China, citing concerns over censorship and data sharing. The partnership was announced by Alibaba in February as a major win in the country’s competitive AI market.

According to three people familiar with the matter, the deal could help Alibaba improve its AI capabilities, expand its reach through chatbots with censorship limits, and deepen Apple’s exposure to Beijing’s laws on these issues. However, Apple did not immediately comment on the reports.

Alibaba’s partnership with Apple aims to support iPhones’ AI services in China, a move that could give the Chinese company an edge in the country’s AI market. Reuters was unable to confirm The New York Times report, citing no immediate confirmation of the details.

Source: https://www.cnbc.com/2025/05/17/trump-administration-concerned-by-deal-to-put-alibabas-ai-on-iphones.html