Apple and Alibaba's plans to introduce AI services in China are facing delays due to scrutiny from Beijing regulators, reportedly influenced by ongoing geopolitical tensions stemming from the US-China trade war. This hold-up creates uncertainty for Apple regarding the timeline for launching its AI features in China, a crucial market where it needs a local partner to comply with regulations. The partnership with Alibaba was intended to leverage their extensive user data to enhance Apple's AI capabilities. For Alibaba, this deal offered a chance to expand its AI models to Apple's large user base, gaining an edge in China's competitive AI landscape. Any setbacks could impede Alibaba's AI ambitions, especially after recent disappointing earnings from its cloud unit. The White House is reportedly concerned that this partnership could help Chinese firms improve their AI and expose Apple to Chinese censorship and data-sharing laws.
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