Trump Administration Concerned About Apple-Alibaba AI Deal on iPhones in China

The Trump administration is closely monitoring Apple’s plan to partner with Alibaba to bring the Chinese company’s artificial intelligence technology to iPhones sold in China. The New York Times reported on Saturday that U.S. government officials, including members of Congress, are reviewing the deal due to national security concerns. The partnership aims to enhance AI features for iPhone users in China, but officials worry about data privacy and the potential for Chinese government influence.

Apple’s plan involves integrating Alibaba’s AI software into iPhones made for the Chinese market. Alibaba is a major technology company in China, known for its work in e-commerce, cloud computing, and artificial intelligence. The move is intended to improve the user experience by offering AI tools tailored to local needs.

However, U.S. officials are concerned that this deal could allow the Chinese government greater access to data through Apple’s devices. There are worries that such technology could be used for surveillance or could expose sensitive information. This scrutiny comes amid ongoing tensions between the U.S. and China in technology and trade.

The involvement of a Chinese company with close ties to the government has made this deal a subject of intense review. The Trump administration is known for its tough stance on Chinese technology companies, citing risks to American security and privacy. Lawmakers are paying close attention to ensure that national security is not compromised.

If the deal moves forward, it could change the way iPhones work in China by adding new AI functions powered by Alibaba. This may help Apple compete better in the Chinese market, where local technologies are popular. On the other hand, the review may delay or alter the agreement, depending on the findings of U.S. officials.

Apple and Alibaba have not yet released official statements regarding the investigation. The U.S. government’s review could result in regulatory action or demands for changes in the partnership. This case reflects the wider challenges of global technology companies working in politically sensitive environments.