What happened
Apple and Samsung Electronics have formalized partnerships with Chinese tech giants Alibaba and Baidu to power their artificial intelligence services within China. Apple’s integration of Alibaba’s Qwen model into Apple Intelligence is set for a public rollout in December via iOS 27.3, following developer testing that began in late November. Samsung’s collaboration with Baidu, which began in January 2024, has expanded to the Galaxy S26 series, utilizing Baidu’s Ernie model for localized AI features. These partnerships are primarily driven by the need to comply with China’s strict regulatory registration requirements for public-facing services, which were registered in July. While Apple retains control over certain features like live translation, the core AI capabilities in China will rely on Chinese infrastructure, creating a fragmented user experience compared to global markets.
Apple and Samsung Electronics are increasingly relying on Chinese technology giants to power their artificial intelligence services in China, highlighting a growing dilemma for foreign smartphone makers. Apple’s new partnership with Alibaba Group and Samsung’s existing collaboration with Baidu reflect the growing importance of Chinese AI technology in a market where strict regulations and limited access to foreign platforms constrain global services.
On Oct. 31, Alibaba announced a partnership with Apple to integrate its Qwen AI model into Apple Intelligence in China. Developer testing began Wednesday, with a public rollout planned for December through iOS 27.3. Qwen will support Siri, Writing Tools and Visual Intelligence, allowing users to generate text and ask questions about photos and documents. Apple's own models will continue to power features such as live translation and photo editing, while its next-generation Siri AI will not be included in the initial rollout.
Samsung partnered with Baidu in January 2024 to localize Galaxy AI. While Circle to Search on global Galaxy S24 models uses Google's technology, the Chinese version relies on Baidu's Ernie model and search capabilities. Chinese media reported in July that the collaboration had expanded to the Galaxy S26 series. The companies have also worked on Chinese-language input, document summarization, Bixby and an AI call assistant that can handle courier and food-delivery calls when configured by users, according to Baidu.
According to Counterpoint Research, China's smartphone shipments fell 10 percent on-year in the third quarter. Huawei Technologies led with a 21.3 percent market share, followed by Apple at 19.5 percent. Samsung remained outside the top six. For Apple, the partnership is a necessary tool to defend its market share, while for Samsung, maintaining ties to the country's manufacturing supply chain may matter more than an immediate recovery in handset sales.
Source details: koreaherald.com
Why it matters
This development marks a significant shift in the global AI landscape, where regulatory boundaries force major Western tech companies to cede control of their AI stacks to local competitors. For Apple and Samsung, these partnerships are strategic necessities to maintain market share in China, the world’s largest smartphone market, where domestic brands like Huawei are gaining ground. However, this reliance introduces long-term risks, including fragmented user experiences, reduced control over data, and the potential for these partners to become direct competitors in the AI services sector. The situation highlights the tension between global technological integration and local regulatory sovereignty, potentially setting a precedent for how foreign tech companies navigate AI regulations in other markets with strict data and content controls.
The partnerships are driven by China's requirement for public-facing services to meet content and security standards and undergo regulatory registration. In July, its cyberspace regulator included Apple Intelligence and Galaxy AI among seven registered smartphone AI services. Industry experts say such collaborations have become a practical way to meet regulatory requirements and tailor services to local consumers, rather than a matter of choice.
The growing reliance on Chinese AI providers carries risks, including fragmented user experiences across markets, regulatory uncertainty and reduced control over technology and data. Experts warn that these companies aren't just partners; even if they don't make smartphones, they could become competitors in AI services. Maintaining technological independence and effective control over data would be essential to long-term competitiveness.
The partnerships could offer benefits beyond regulatory compliance by connecting smartphone AI services with China's extensive digital ecosystems. Alibaba operates Taobao and Alipay, while Baidu has a strong position in Chinese search and mapping. Integrating AI with such platforms could make assistants more useful for everyday activities, including shopping, payments and navigation, although neither Apple nor Samsung has confirmed plans to integrate these broader services into their AI platforms.
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What to watch next
Monitor the December rollout of Apple Intelligence in China to assess user reception and any reported discrepancies in AI performance compared to global versions. Watch for further expansions of Samsung’s Baidu integration, particularly regarding deeper ecosystem ties with Baidu’s search and mapping services. Additionally, track regulatory developments in other regions that may impose similar requirements for local AI partnerships, and observe how these dependencies affect the long-term competitive positioning of Apple and Samsung against domestic Chinese AI providers.
The public rollout of Apple Intelligence in China is planned for December through iOS 27.3. Users and analysts should monitor the performance of Qwen-powered features like Siri and Visual Intelligence against global versions to assess the impact of the localized model.
Samsung’s collaboration with Baidu has expanded to the Galaxy S26 series. Future developments may include deeper integration with Baidu’s search and mapping capabilities, which could differentiate the Chinese version of Galaxy AI from its global counterparts.
The competitive landscape in China remains tight, with Huawei leading market share. The effectiveness of these AI partnerships in retaining users and countering domestic brands will be a key indicator of their strategic value for Apple and Samsung.