The Globe and Mail reports in its Monday edition that Apple believes the future success of the iPhone depends on the availability of new artificial-intelligence features. A New York Times dispatch to The Globe says, however, tensions between Washington and Beijing may cripple the tech giant's plans to deliver AI in its second most-important market, China. In recent months, the White House and congressional officials have been scrutinizing Apple's plan to strike a deal with Alibaba to make the Chinese company's AI available on iPhones in China. They are concerned that the deal would help a Chinese company improve its AI abilities, broaden the reach of Chinese chatbots and deepen Apple's exposure to Beijing laws over censorship and data sharing. The scrutiny is the latest example of the challenges that Apple has run into as it tries to sustain its businesses in the United States and China at a time of rising geopolitical tensions. Walking away from an Alibaba deal would have grave consequences for Apple's business in China, which accounts for almost one-fifth of the company's sales. The partnership with the Chinese tech company is critical to bringing AI features to iPhones in one of the world's most competitive markets.
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