Alibaba has announced a new partnership with Apple to support the development of AI services for iPhones in China, a move that aims to help Apple counter declining smartphone sales in its crucial market. The collaboration is seen as a significant win for Alibaba, which is gaining ground in China’s competitive AI industry, dominated by local players like DeepSeek. This deal comes after months of speculation regarding Apple’s AI strategy in the region, as the tech giant held discussions with other Chinese companies such as Baidu, ByteDance, and Tencent.
While the specifics of the partnership are still unclear, Alibaba’s chairman Tsai noted that Apple chose their AI technology to power its phones in China. The two companies have already submitted necessary regulatory materials to Chinese authorities, as consumer-facing AI products in the country require approval. Alibaba’s stock saw a notable rise following the announcement, reflecting investor optimism about the deal.
The timing of this collaboration is crucial for Apple, which has faced challenges in China, including falling iPhone sales and increased competition from domestic rivals like Huawei. Analysts suggest that Apple’s struggles in the region are partly due to the lack of advanced AI features in its phones, a growing demand in the Chinese market. Apple’s sales in Greater China dropped significantly in late 2024, and the company lost its top position in the market to local players like Vivo and Huawei.
For Alibaba, the partnership underscores its growing strength in AI, with its stock price surging in 2025. The company’s Qwen 2.5 AI model, which surpassed the capabilities of competitors, has become a focal point of its recent success. As Apple seeks to re-establish its presence in China, the effectiveness of this AI collaboration will likely play a critical role in its future in the market.
For more information on these topics, visit diplomacy.edu.
The rise of DeepSeek’s AI models is offering Chinese chipmakers like Huawei a better chance to compete in the domestic market against the powerful processors from US companies like Nvidia. For years, Huawei and other Chinese manufacturers have struggled to match Nvidia’s high-end chips, which are essential for training AI models. However, DeepSeek’s focus on ‘inference’ rather than raw processing power has led analysts to believe that it could help close the gap between Chinese-made processors and their US counterparts. Inference refers to the phase where AI models use trained data to make predictions, a process less reliant on heavy computational resources.
Several Chinese AI chipmakers, including Huawei, EnFlame, and Moore Threads, have recently stated that their products will support DeepSeek models, although few details have been disclosed. Industry executives predict that DeepSeek’s open-source nature and its low fees will drive the adoption of AI, helping Chinese companies bypass US export restrictions on advanced chips. In fact, Chinese chips like Huawei’s Ascend 910B have already been recognised as better suited for inference tasks, which require less computational power than training.
Despite these developments, Nvidia still dominates the global AI chip market. Analysts point out that while Chinese chips are cost-effective for inference tasks, Nvidia’s superior chips remain the preferred choice even for inference. Nvidia’s CUDA platform, which provides developers with a robust software environment, remains a key advantage, and Chinese companies like Huawei have struggled to convince developers to abandon CUDA in favour of their platforms, such as Huawei’s Compute Architecture for Neural Networks (CANN). The software performance of Chinese AI chips continues to lag behind, making it challenging for them to directly challenge Nvidia’s dominance.
For more information on these topics, visit diplomacy.edu.
Dario Amodei, CEO of AI firm Anthropic, has warned that the race to develop AI is moving faster than efforts to fully understand it. Speaking at an event in Paris, he stressed the need for deeper research into AI models, describing it as a race between expanding capabilities and improving transparency. ‘We can’t slow down development, but our understanding must match our ability to build,’ he said.
Amodei rejected the notion that AI safety measures hinder progress, arguing instead that they help refine and improve models. He pointed to earlier discussions at the UK’s Bletchley Summit, where risk assessment strategies were introduced, and insisted they had not slowed technological growth. ‘Better testing and measurement actually lead to better models,’ he said.
The Anthropic CEO also discussed the evolving AI market, including competition from Chinese firm DeepSeek, whose claims of dramatically lower training costs he dismissed as ‘not based on facts.’ Looking ahead, he hinted at upcoming improvements in AI reasoning, with a focus on creating more seamless transitions between different types of models. He remains optimistic, predicting that AI will drive innovation across industries, from healthcare to finance and energy.
For more information on these topics, visit diplomacy.edu.
The Dutch government plans to cut bureaucracy and increase investment in artificial intelligence to help the country’s tech startups thrive, Prime Minister Dick Schoof announced. His comments follow a report by TechLeap, which revealed a sharp decline in small firms securing significant funding. Despite a 47% increase in venture capital investment in 2024, the number of Dutch startups receiving more than €100,000 fell dramatically, with most funding coming from foreign investors.
Schoof, speaking at TechLeap’s annual event in The Hague, stressed the urgency of creating a business-friendly environment to attract venture capital. He warned that Europe risks being left behind by the US and China if immediate action is not taken. Eindhoven, home to chip giant ASML, has been a key driver of the Dutch economy, but the slowdown in startup growth raises concerns about long-term innovation.
Two Dutch firms, hotel software developer Mews and AI-powered auditing company DataSnipper, achieved unicorn status last year, but industry leaders remain cautious. With the government now vowing to intervene, the hope is that streamlined regulations and targeted investments will help revive the country’s startup ecosystem.
For more information on these topics, visit diplomacy.edu
Google has announced a new partnership with Poland, signing a memorandum of understanding aimed at accelerating the adoption of AI in the country. The agreement was revealed by CEO Sundar Pichai during a news conference on Thursday. Through this collaboration, Google and Poland seek to use AI as a tool to drive economic growth and innovation, focusing on areas that include cybersecurity, health, and energy.
The deal highlights the potential for AI to transform key sectors of the economy, with both parties eager to explore new opportunities. Pichai emphasised how AI could help bolster cybersecurity measures, improve healthcare delivery, and increase energy efficiency in Poland, which would have far-reaching implications not just for the country but for the broader European region. These sectors, in particular, are seen as critical for future development, and the use of AI could significantly enhance Poland’s technological capabilities.
This partnership also underscores Google’s growing commitment to global AI initiatives, as the company continues to collaborate with governments and organisations around the world to implement AI-driven solutions. Poland is positioning itself as an important player in Europe’s AI landscape, and this agreement represents a step forward in its efforts to modernise and compete on a global scale in the rapidly evolving tech space.
For more information on these topics, visit diplomacy.edu.
Elon Musk announced on Thursday that his AI chatbot, Grok 3, is nearing completion and will be released in the next week or two. In a video call at the World Governments Summit in Dubai, Musk stated that Grok 3 exhibits powerful reasoning capabilities, outperforming other AI models in tests conducted so far. This new AI is being developed through Musk’s company, xAI, which he founded to rival OpenAI and Google.
Musk, also a co-founder of OpenAI, has been outspoken in his criticism of the AI startup. Recently, a consortium led by Musk made a $97.4 billion offer to acquire OpenAI’s nonprofit assets, a move that comes amid Musk’s ongoing legal battle with OpenAI. He is challenging the company’s decision to transition to a for-profit model, arguing that it undermines its original nonprofit mission.
In addition to discussing AI, Musk shared his thoughts on reducing US government spending, suggesting that $1 trillion could be saved by cutting inefficiencies. He also spoke on international matters, advising the US to be less involved in other countries’ affairs. Musk’s comments followed a partnership announcement with UAE AI Minister Omar Al Olama on a futuristic underground transport system called the “Dubai Loop.”
Musk’s remarks at the summit highlighted his wide-ranging influence, not only in technology but also in global political and economic discussions.
For more information on these topics, visit diplomacy.edu.
Apple has partnered with Chinese tech giant Alibaba to develop AI features for iPhones in China, aiming to bolster its presence in a highly competitive market. The collaboration follows months of uncertainty over Apple’s AI strategy in the country, where rivals like Huawei have already integrated AI tools into their devices. The move marks a shift from Apple’s earlier preference for Baidu, which reportedly fell short of the company’s expectations.
The partnership could help Apple regain lost ground after a decline in iPhone sales during the holiday season, a period typically strong for the company. The AI-powered features have been submitted for regulatory approval in China, a crucial step before their rollout. Apple’s stock saw a 1.5% rise following the news, while Alibaba’s US-listed shares gained 2.6%.
Apple’s decision to work with Alibaba was reportedly influenced by the e-commerce giant’s vast datasets on user shopping and payment habits, which could enhance AI model training and improve personalised services. As Apple anticipates strong sales growth in the current quarter, this partnership could play a key role in driving renewed demand for iPhones in China.
For more information on these topics, visit diplomacy.edu.
China has expressed its willingness to share advancements in artificial intelligence with the world, emphasising the importance of international collaboration. Speaking at an AI summit in Paris, Vice Premier Zhang Guoqing stated that China aims to safeguard security in the field while building ‘a community with a shared future for mankind,’ a key principle of President Xi Jinping’s foreign policy.
The statement highlights China’s push for deeper global partnerships in emerging technologies amid growing competition and regulatory scrutiny. AI has become a focal point in international relations, with nations balancing innovation with security concerns. Zhang’s comments suggest China is positioning itself as a cooperative player in shaping AI’s future.
As AI continues to reshape industries and societies, China’s call for collaboration signals its intent to engage with global stakeholders. Whether these efforts will lead to concrete partnerships remains to be seen, but the message from Beijing is clear: China is open to working with the world on artificial intelligence.
For more information on these topics, visit diplomacy.edu
Foxconn, the world’s largest contract electronics manufacturer and Apple’s main iPhone maker, is prepared to adjust its production strategies in response to new US tariffs. Chairman Young Liu stated that the company is capable of planning its manufacturing around these changes, particularly with US President Donald Trump’s recently announced 25% tariff on all imports from Mexico and Canada, which has been paused until March 4.
Liu explained that Foxconn operates factories in both the United States and Mexico and will adjust production capacities based on the impact of the tariffs. He emphasised that Foxconn has the flexibility to move its operations between countries, minimising the overall effect of the tariffs on the company. However, Liu also warned that such tariffs are detrimental to the global economy, potentially shrinking markets.
Foxconn remains committed to working with US partners to align its manufacturing strategies with President Trump’s push for more domestic production. Despite the uncertainty around the tariffs, the company is prepared to adapt as necessary.
For more information on these topics, visit diplomacy.edu.
Authorities have arrested four Russian nationals suspected of deploying Phobos ransomware to extort payments from victims across Europe and beyond. Europol announced that law enforcement agencies from 14 countries worked together to dismantle the network, taking down 27 servers linked to the cybercriminals. The individuals arrested were reportedly leaders of the 8Base ransomware group, a key player in distributing Phobos malware.
The operation follows a series of recent arrests targeting Phobos-related cybercrime. In June 2024, a key administrator of the ransomware was apprehended in South Korea and later extradited to the United States, while another major affiliate was arrested in Italy last year. Authorities have since issued warnings to over 400 companies worldwide about imminent cyberattacks.
Phobos ransomware has been particularly damaging to small and medium-sized businesses, which often lack strong cybersecurity protections. Europol’s latest Russian crackdown is a significant step in weakening the ransomware network and preventing further cyber extortion efforts.
For more information on these topics, visit diplomacy.edu
