Apple’s move marks its attempts to consolidate its position in China as Apple Intelligence capability is unavailable to iPhone users.
It lost market share in the country to government-incentivized local vendors amid intensifying geopolitical tensions with the U.S.
Also Read: Apple’s App Store Booms As ChatGPT, Productivity Apps Drive Revenue Growth, Analyst Says
China also mandated international companies to tap a domestic company as a primary partner, which prompted Apple to partner with Baidu Inc (NASDAQ:BIDU) to develop an AI model, only to part ways later as the latter failed to impress.
Meanwhile, Apple and Alibaba submitted their co-developed Chinese AI features for China’s regulatory approval, Reuters reports.
DeepSeek’s affordable AI model reports triggered a U.S. tech selloff, with Nvidia Corp (NASDAQ:NVDA) losing $600 billion in market value in a single day.
In the U.S., Apple partnered with Microsoft-backed OpenAI to integrate ChatGPT into iOS 18, iPadOS 18, and macOS 15 Sequoia. The AI feature is available free of charge and does not log user data.
OpenAI targets a billion users by 2025, driven by new AI products, a key partnership with Apple, and significant infrastructure investments.
Recently, Apple’s Tim Cook lauded DeepSeek for driving efficiency. By 2028, Counterpoint expects 90% of smartphones priced above $250 to be Generative AI-capable.
Price Actions: At last check Tuesday, AAPL stock was up 3.05% at $234.60. BABA is up 3.49%.
Also Read:
Image Via Shutterstock
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
To add Benzinga News as your preferred source on Google, click here.
