Apple-Alibaba AI partnership reportedly under U.S. investigation
2025-05-19 10:36:59

The Trump administration and congressional officials are scrutinizing an AI partnership between Apple and Alibaba, The New York Times reported on Saturday.

Citing anonymous sources, the report said White House officials and members of the U.S. House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, have directly questioned Apple executives about the deal, with questions centering on what data will be shared with Alibaba and whether the company has made any commitments to Chinese regulators.

Apple executives were reportedly unable to answer most of those questions.

In a statement, U.S. Rep. Raja Krishnamoorthi described Alibaba as "a poster child for the Chinese Communist Party's military-civil fusion strategy" and said Apple's lack of transparency about its agreement was "extremely disturbing".

The report notes that the deal itself has only been publicly confirmed by Alibaba, not Apple.

Alibaba's Hong Kong-listed stock was down more than 4% at HK$118.4 per share Monday morning after the report.

On Feb. 11, The Information was the first to report that Apple and Alibaba would develop AI features for Chinese iPhone users.

Then, on Feb. 13, Alibaba co-founder and board chairman Joseph Tsai confirmed Alibaba's partnership with Apple at the World Governments Summit 2025 in Dubai, United Arab Emirates.

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