This article only represents the author's own views.
When Apple (AAPL.US) recently unveiled its collaboration with Alibaba (BABA.US; 9988.HK) to enhance AI-driven smartphones in China, it was widely seen as a calculated move to navigate Beijing’s tightening regulatory grip. Yet, in choosing Alibaba, Apple may have overlooked the true game-changer in China’s AI landscape: DeepSeek. This open-source upstart is quietly redefining AI efficiency and ecosystem integration in ways Alibaba cannot. Apple’s reluctance to embrace DeepSeek could prove to be a strategic miscalculation, leaving it vulnerable in a market where technological dominance hinges on localization and flexibility.
Apple’s limited bet on Alibaba
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