Apple has received regulatory approval to deploy its artificial intelligence technology in China, according to reports. The milestone sent shares of Alibaba and Baidu sharply higher, as investors priced in the potential for major partnerships in the world's largest smartphone market.
The approval ends a lengthy regulatory review process for Apple, which has been seeking to bring its Apple Intelligence features to Chinese consumers. According to multiple reports, the green light is conditional on integrating local AI technology. Alibaba's Qwen large language model is reportedly set to power Apple's AI services in China, while Baidu is also expected to play a role. No official confirmation of the terms has been made by any of the companies involved.
The immediate effect is a rise in Alibaba and Baidu's share prices. Both companies are seen as potential partners for Apple's AI services in China, though no official confirmation of partnerships has been made. For Alibaba, the potential tie-up with Apple could drive adoption of its cloud and AI offerings. Baidu, a leader in Chinese AI with its Ernie Bot platform, may also benefit from being part of Apple's ecosystem in China. The price jump underscores how regulatory progress can act as a powerful catalyst for related equities.