Apple’s ongoing series of regulatory challenges has taken a turn for the worse. The New York Times reports that government officials have expressed concerns about Apple’s collaboration with Alibaba to integrate AI features into iPhones sold in China. When Apple introduced Apple Intelligence, it partnered with OpenAI to incorporate ChatGPT as part of its AI capabilities. However, since OpenAI cannot operate in China, Apple sought a local partner within the country. Over recent months, Apple considered potential partnerships with Baidu, DeepSeek, and Tencent. Ultimately, it appears to have chosen Alibaba, whose open-source AI model, Qwen, has shown rapid advancements. Apple has not officially confirmed its alliance with Alibaba, though Apple’s chairman seems to have acknowledged it on their behalf. Washington’s scrutiny Officials from the White House and the House Select Committee on China have recently questioned Apple about this arrangement.

They reportedly raised direct concerns with Apple’s executives, seeking clarity on any obligations the company might have under Chinese law. National security officials and lawmakers worry that working with Alibaba may bolster China’s AI capabilities, especially if it involves sharing user data or improving China’s AI models. Representative Raja Krishnamoorthi, a senior figure on the House Intelligence Committee, described the deal as “extremely disturbing. ” He cautioned that Apple might be assisting a firm closely linked to the Chinese Communist Party—echoing concerns similar to those surrounding TikTok, which has faced restrictions in the U. S. Greg Allen, director of the Wadhwani A. I. Center at the Center for Strategic and International Studies, added, “The United States is in an AI race with China, and we just don’t want American companies helping Chinese companies run faster. ” Behind closed doors, U. S. officials have debated placing Alibaba and other Chinese AI companies on a restricted list that would bar them from collaborating with American enterprises. The Department of Defense and intelligence agencies are also reportedly reviewing Alibaba’s connections to the Chinese military.