Apple Intelligence, Apple's generative AI initiative, is set to launch in China. According to a Wednesday report from Reuters, the Cyberspace Administration of China, the country's regulatory body, has given the green light for Apple's AI services. This approval follows an agreement to incorporate Alibaba's Qwen AI model into Apple's operating systems, which include iOS, iPadOS, macOS, and visionOS. The partnership, which had been rumored since last year, represents a significant milestone for Apple's AI strategy in this crucial market.

In the second quarter, Apple saw a 28% rise in sales within Greater China, reaching $20.5 billion. The company also reclaimed the second spot in China's smartphone market after a recent shopping event offered discounts on the iPhone series. Before teaming up with Alibaba, Apple had reportedly considered a collaboration with Baidu, but encountered difficulties in tailoring its models for Chinese users. Other potential integrations with DeepSeek and models from ByteDance were also explored, according to reports. These challenges caused delays in bringing Apple Intelligence features—first introduced in 2024—to the Chinese market.

Alibaba confirmed the news to CNBC in a statement, noting that Qwen would be "integrated into Apple Intelligence experiences," though no specific timeline was provided. The company added that the integration would include AI capabilities such as "text and image understanding and generation." Following the announcement, Alibaba's U.S.-listed shares rose 4% in pre-market trading and have since climbed over 6% as of this writing.