Apple selected Baidu as its main partner last year, but the company's progress in developing models fell short of its standards, the report said.

The development could clear months of uncertainty over Apple's AI strategy for China, where it has been losing market share to domestic rivals, including a resurgent Huawei whose smartphones have included AI tools since last year.

Key Takeaways Apple is reportedly partnering with Chinese firm Alibaba to develop artificial intelligence features for iPhones in China.Apple Intelligence is a key selling point of iPhone 16, but the service has been unavailable in China since its October launch.