US administration is concerned by deal to put Alibaba's AI on iPhones

Trump administration probes Apple-Alibaba AI deal over security fears

Robert Besser
21 May 2025, 14:18 GMT+10

US administration is concerned by deal to put Alibaba's AI on iPhones

The Trump administration is scrutinizing Apple’s plans to partner with Chinese tech giant Alibaba to bring its artificial intelligence technology to iPhones in China, raising concerns about potential national security risks
Officials in the White House and Congress are reportedly concerned that the deal could enhance Alibaba’s AI capabilities, expand the reach of Chinese chatbots subject to censorship, and further entangle Apple in China’s stringent data-sharing and censorship laws
The report, which cites unnamed sources familiar with the matter, comes amid heightened U.S. scrutiny of Chinese tech firms and their access to American technology

WASHINGTON, D.C.: The Trump administration is scrutinizing Apple's plans to partner with Chinese tech giant Alibaba to bring its artificial intelligence technology to iPhones in China, raising concerns about potential national security risks, according to a report by The New York Times.

Officials in the White House and Congress are reportedly concerned that the deal could enhance Alibaba's AI capabilities, expand the reach of Chinese chatbots subject to censorship, and further entangle Apple in China's stringent data-sharing and censorship laws. The report, which cites unnamed sources familiar with the matter, comes amid heightened U.S. scrutiny of Chinese tech firms and their access to American technology.

Apple and Alibaba have not responded to Reuters' requests for comment. However, Alibaba confirmed in February that it had partnered with Apple to support AI services on iPhones in China.

The deal represents a significant win for Alibaba in China's highly competitive AI market, where it faces rivals such as DeepSeek, a company that gained attention this year for producing AI models at significantly lower costs than their Western counterparts.

For Apple, the potential partnership could deepen its exposure to China's regulatory environment, a sensitive issue given the ongoing trade tensions and the U.S. government's broader crackdown on Chinese tech firms. Reuters has not independently verified The New York Times report.