The Trump administration is raising red flags over a reported deal between Apple and Alibaba to integrate the Chinese artificial intelligence (AI) technology into iPhones sold in China.
According to The New York Times, The White House and congressional officials have been scrutinizing Apple’s plan to strike a deal with Alibaba group to make the Chinese company’s AI available on iPhones in China.
The partnership, confirmed by Alibaba in February, aims to enhance iPhone AI features in China, where Apple has been losing market share to domestic competitors like Huawei and Xiaomi. Apple previously considered other Chinese tech firms, including Baidu, Tencent, ByteDance, and DeepSeek, but lastly selected Alibaba for its extensive user data resources.
Also Read, AI Power Shift? Nvidia CEO Alarmed as 50% of AI Researchers Are Chinese
U.S. authorities are alarmed that the deal could help Alibaba to improve its AI model and expand the reach of censored Chinese chatbots. Additionally, the partnership could expose Apple’s vulnerability to Chinese laws regarding data sharing and content control.
Apple and Alibaba have not publicly commented on the concerns raised by U.S. officials. The deal is still pending approval by China’s cyberspace regulator.
The scrutiny comes amid escalating tensions between the U.S. and China over technology and trade. The Trump administration has imposed tariffs on Chinese goods and restricted exports of U.S. technology to Chinese companies. In response, China has accelerated its efforts to develop in-house alternatives in tech industry, including AI.
Next Read, Will Apple fullfil AI promises with iPhone 17 launch?