Apple Intelligence, the generative AI solution from the iPhone manufacturer, is set to launch in China. On Wednesday, Reuters disclosed that the Cyberspace Administration of China, the nation’s regulator, has approved Apple’s AI services within its borders, following an agreement to incorporate Alibaba’s Qwen AI model into Apple’s operating systems, including iOS, iPadOS, macOS, and visionOS.

This agreement, which was speculated to be in progress last year, represents a significant advancement for Apple’s AI goals in a crucial market. In the second quarter, Apple’s revenue in Greater China surged by 28% to $20.5 billion. Furthermore, Apple recently reclaimed the second spot in China’s smartphone industry after a recent promotional event provided discounts on the iPhone range.

Before partnering with Alibaba, Apple was reportedly in discussions with Baidu but encountered challenges in customizing its models for Chinese clients. It also looked into collaborations with DeepSeek and models from ByteDance, according to reports. These challenges contributed to delays in introducing Apple Intelligence features, which are set to launch in 2024, to the Chinese audience.

Alibaba acknowledged the company’s announcement to CNBC through a statement, confirming that Qwen would be “integrated into Apple Intelligence experiences,” though it did not specify a timeline. The statement also indicated that these integrations would encompass AI functionalities such as “text and image comprehension and production.”

U.S. shares of Alibaba increased by 4% in pre-market trading following the announcement of the agreement and have now risen by over 6%, as of the publication time.