Apple's Reported AI Deal with Alibaba Draws U.S. Scrutiny Amid China Concerns:

Suspense Crime, Digital Desk : U.S. officials are continuing to investigate the claims that Apple worked with Alibaba to enable advanced AI functions in iPhones sold in China. Apple’s AI programs, branded at Apple as “Apple Intelligence,” use OpenAI everywhere, but in China were forced to use domestic alternatives because of the restrictions on OpenAI.

Alibaba Reportedly Powers Apple AI in China

In any event, Apple reportedly reserched a number of Chinese technology companies like Baidu, Tencent, and DeepSeek before settling on Alibaba’s Qwen, which is an open-source large language model. Although Apple has yet to officially announce the partnership, earlier this year Alibaba’s chairman suggested that Apple ‘chose’ Alibaba’s AI for its iPhones.

U.S. Officials Raise Security and Data Privacy Concerns

Washington is on alert on potential partnership. Members of the White House and the House Select Committee on China seem to be asking Apple whether the company is inadvertently working to advance China’s AI capabilities or compromise data protection for US-based users. Apple’s lobbyists, as it is reported, did not have plausible explanations to the lawmakers about the sharing of data and the obligations of China’s laws on data.

Concerns Regarding TikTok and Possible Trade Limitations

Raja Krishnamoorthi, a congressman, described the reported collaboration between Apple and Alibaba as ‘extremely disturbing’, adding that it raises national security flags similar to those posed by TikTok. Other analysts from think tanks such as the Center for Strategic and International Studies cautioned about further integrating Chinese AI capabilities with US technology.

Potential Limitations for Chinese AI Companies

U.S. officials are currently looking into the possibility of restricting collaboration with Chinese AI companies, including putting Alibaba under a federal blacklist. It is claimed that the intelligence and defense departments are looking into the links that Alibaba has with the military in China.

Apple Stiffens AI and Geopolitical Headwinds Alongside Softening IPhone Sales

Apple is also contending with dwindling iPhone sales in China, rising competition, and regulatory scrutiny. This is especially pertinent with the iPhone 16 set to launch later this year.