Apple Intelligence, Apple's generative AI offering, is set to launch in China following approval from the Cyberspace Administration of China. The move comes after the tech giant struck a deal with Alibaba’s Qwen AI model, integrating it into its operating systems such as iOS and macOS.

This development represents an important step for Apple's AI ambitions in the key Chinese market, where sales have been on the rise. In the second quarter of 2024, Apple reported a significant increase in Greater China revenues to $20.5 billion, with the company recently regaining its No. 2 spot in the country’s smartphone market following discounts offered during a recent shopping festival.

Apple was previously exploring deals with Baidu and other Chinese companies but faced challenges adapting their AI models for local audiences. Working with Alibaba promises smoother integration of Qwen's text and image understanding capabilities into Apple Intelligence, potentially enhancing user experiences in China.

The confirmation from Alibaba suggests that the integration is on track, though no specific timeline was provided. This deal could boost both companies’ market positions: U.S. shares of Alibaba rose 4% in pre-market trading on the news and are up over 6% as of publication.