Alibaba's AI on the iPhone from now on.

American tech company Apple is set to include Chinese company Alibaba's AI technology in iPhones sold in China. Alibaba Chairman Joseph Tsai announced at the World Government Summit in Abu Dhabi, United Arab Emirates, that Apple has agreed to enter into a business partnership with them.

According to Tech Crunch, Apple had also discussed AI features with ByteDance and DeepSik before reaching an agreement with Alibaba. The news said that both Apple and Alibaba have now submitted the necessary documents to the local administration.

According to Trip Mikel, a journalist who has been writing about Apple for the past decade in The New York Times, US lawmakers and the Trump administration have expressed concerns about the deal to include the Chinese company's AI technology in iPhones. “The US is concerned that such a deal will allow Chinese companies to improve their AI capabilities, expand access to Chinese chatbots with sensor capabilities,” writes Mikel, “and that Apple will be exposed to China’s legal influence over sensor capabilities and data sharing.”

The Trump administration has pressured Apple to move iPhone production from China to the US. US President Trump has also criticized the company’s plans to manufacture iPhones in India.

Although Alibaba confirmed the partnership with Apple, neither company has officially commented on it. The deal is seen as important for Alibaba to compete with companies such as DeepSec and Baidu, which are launching their own chatbots and large language models in China. It is even more important for Apple because the company hopes it will help create a positive environment in China as the iPhone market continues to decline.

US President Trump has threatened to impose at least 25 percent tariffs on iPhones not made in the US. He has also said that he will impose a 50 percent tax on all goods imported from the European Union.

Trump's warning came after Apple CEO Tim Cook announced plans to move iPhone manufacturing from China to India. "I want iPhones sold in the United States to be made in the United States, and I've told Tim Cook about this a long time ago," Trump said. "The iPhone should be made in the United States, not in India or any other country."

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