Happy Family with Apple: The Recipe for More Money

July 27, 2026

Another dinobaby post. No AI unless it is an image. This dinobaby is not Grandma Moses, just Grandpa Arnold.

247WallSt that takes a look at Apple and China, the cook has wok’ed up a rewarding dish. “China’s New AI Breakthrough Shows Tim Cook’s Risky Final Bet Might Actually Be Genius” suggests that Apple is an AI genius. (Those annoyed with Siri are simply not into the Jobs’s reality distortion field.)

Suddenly China has made Apple a new rival in the AI race, because China’s Cyberspace Administration has given the green light to the Chief Cook to launch Apple Intelligence in the Middle Kingdom. It is a happy family indeed: The Chinese authorities, Alibaba with its Qwen model integrating with Apple’s operating systems, and Baidu participating as a development partner. Stock markets liked the partnership and the three tech companies saw their stock jump a few points. Techno-whatever in action.

Apple wanted to deploy its intelligence model since 2024 in China, but the Chinese government has been reluctant until there was a benefit for the country. China may have wanted to press forward with their domestic models until those reached or exceeded the performance of the US models.

The write up suggests that Tim Cook made a smart move not owning its intelligence software:

“While Microsoft, Google, Amazon, and Meta poured tens of billions into proprietary frontier models and data centers, Apple declined to join that arms race. It bet on a “model-agnostic” partnership approach, plugging in outside intelligence rather than owning it.That looked passive to critics. But the China approval shows the upside. By partnering with Alibaba and Baidu, Apple met local regulatory requirements almost automatically. The same playbook is visible at home: Apple struck a multi-year deal to use Google’s Gemini to help power its revamped Siri, expected to launch in September, running in part on Google Cloud and Nvidia chips.”

This move was deemed as risky for Apple, but now the company can wear whatever AI suit it wants without bearing the burden of computing. Does this mean that The Chief Cook is following the game plan of Pavel Durov, the Telegram GOAT? I don’t know. But my hunch is that there will be a payoff for cooking up a happy family with Apple. Trade issues, Department of Commerce concerns? Nope, just a happy family.

Whitney Grace, July 27, 2026

Written by Stephen E. Arnold · Filed Under Business strategy, Government, News

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Stephen E. Arnold monitors search, content processing, text mining and related topics from his high-tech nerve center in rural Kentucky. He tries to winnow the goose feathers from the giblets. He works with colleagues worldwide to make this Web log useful to those who want to go "beyond search". Contact him at sa [at] arnoldit.com. His Web site with additional information about search is arnoldit.com.