Alibaba's stock rises 4% following the approval of Qwen to operate Apple Intelligence in China.
China has authorized Alibaba's Qwen to be integrated into Apple Intelligence for use across iOS, iPadOS, macOS, and visionOS. PrismML has compressed the model to be compatible with the iPhone 15.
On Wednesday, Alibaba confirmed that its Qwen AI model will enhance Apple Intelligence for users in China. “Qwen will be integrated into Apple Intelligence experiences,” an Alibaba representative stated to CNBC. The Cyberspace Administration of China listed Apple AI services as approved providers, alongside offerings from Huawei and other local companies.
Following this announcement, Alibaba’s shares in the US experienced a 3.7% increase. This approval concludes a lengthy regulatory journey that commenced when Apple announced its AI suite in 2024. Previously, Apple Intelligence momentarily appeared on Chinese iPhones without authorization in March, which exposed the company to regulatory risks before the features were subsequently removed. The partnership with Alibaba was established in February 2025; however, delays exceeding a year occurred due to Beijing's content filtering and security evaluation processes.
This integration enables Chinese users to utilize Qwen’s text and image comprehension and generation capabilities seamlessly. It comes amid escalating tensions in the US-China technology rivalry. Recently, Alibaba prohibited its employees from using Anthropic’s Claude, while US lawmakers are exploring measures to limit the adoption of Chinese AI models by American firms. In addition, Meta reportedly had to unravel its $2 billion acquisition of the Chinese company Manus, following Beijing’s intervention.
In a separate development, PrismML, a startup supported by Khosla Ventures and originating from Caltech, introduced compressed versions of Alibaba’s open-source Qwen model on Tuesday. The company reported compressing the model from approximately 54GB to less than 4GB, enabling the usage of all 27 billion parameters on an iPhone 15 or later. Apple is said to be discussing this compression technology with PrismML. After Anthropic accused Alibaba of leading a significant distillation campaign against Claude, the partnership between Qwen and Apple emerges as both a commercial collaboration and a geopolitical message regarding which AI models will dominate China’s most valuable consumer technology devices.
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Alibaba's stock rises 4% following the approval of Qwen to operate Apple Intelligence in China.
The Cyberspace Administration has authorized Apple AI services in conjunction with Huawei. A startup backed by Khosla has compressed Qwen from 54GB to less than 4GB for on-device operation.