Apple has largely avoided competing in the costly race to make advanced artificial intelligence. However, it might not be able to sit out the AI competition in China.

Apple has developed its own AI model for the Chinese market with support from its in-country partner, Alibaba Group, Reuters reported Friday, citing sources familiar with the matter. The iPhone maker's Apple Intelligence suite is expected to launch in China in the coming months, according to Reuters.

Apple didn't immediately respond to Barron's request for comment.

Such a move indicates Apple is confident it will be the first Western company approved to launch its own proprietary AI model in China. It also is an indication of the company's concern that not having its own AI might allow rivals such as domestic rival Huawei Technologies to surge ahead in Chinese sales.

The big question for shareholders is whether Apple will eventually need to take the same approach in the U.S. and elsewhere. So far Apple has opted to largely utilize models from external partners such as Google for the most demanding uses of AI, supported by smaller models running on its own hardware.

Barron's has written positively about that strategy, noting it means Apple avoids costly capital expenditure and that so far AI isn't driving consumers to switch devices.

Apple shares were down 0.2% in morning trading.