Apple's plan to introduce new artificial intelligence features on iPhones in China through a deal with Alibaba is facing resistance from Washington amid tensions between the U.S. and China.
Government officials are concerned that the deal could enhance a Chinese company's A.I. capabilities, expand the use of Chinese chatbots subject to censorship, and expose Apple to Beijing's regulations on censorship and data sharing.
The scrutiny on the Apple-Alibaba deal reflects the challenges the tech giant faces in navigating geopolitical tensions, with previous instances of pressure from the U.S. government affecting its business decisions in China.
Walking away from the Alibaba deal could have significant consequences for Apple's business in China, as the partnership is crucial for incorporating A.I. features into iPhones and maintaining competitiveness in the Chinese market against local rivals.