Alibaba, partnering with Apple with AI features, sends stocks to 3 years’ higher
By Casey Hall
SHANGHAI (Reuters) – Alibaba will partner with Apple to support iPhones AI service services in China, its chairman on Thursday as US companies eases decline in smartphone sales in key markets He said it would likely be helpful.
For Alibaba, the partnership is a major victory in China’s competitive AI market, home to Deepseek, and the headline was that the model was developed this year at a fraction of its Western rivals. Ta.
The landmark deal resolves months of speculation about Apple’s AI strategy in the region as iPhone manufacturers discussed it with Chinese technical leaders such as Baidu, bytedance and Tencent, Reuters and The Information.
“They talked to a lot of companies in China. They ultimately chose to do business with us. They want to use our AI to drive phones. We I am extremely honored to do business with a great company like Apple,” Tsai said. At the World Government Summit in Dubai.
While Apple’s phones outside China use the combination of their own Apple Intelligence and Openai’s ChatGPT, Tsai did not specify whether the Alibaba partnership would follow a similar model.
In China, consumer-oriented AI products require regulatory approval, and information previously reported that both Alibaba and Apple have already submitted materials to the authorities.
Alibaba’s Hong Kong listed stocks rose 9.2% to 9.2%, to HK$124.3, the highest since January 2022.
Apple did not immediately respond to requests for comment.
“Instead of looking at the Alibaba pre-partnership through the lens of Chinese AI strengths, the partnership is primarily a recognition of Alibaba’s AI capabilities,” said Lian Jye Su, chief analyst at technology research firm Omdia.
Other analysts said Apple’s impact will depend on how quickly China’s features have been rolled out.
“It’s not an easy fight as local competitors are actively marketing their own AI capabilities,” said Will Wong, an analyst at research firm IDC.
Important times
AI integration is at a critical time for Apple, facing a decline in iPhone sales in China, amid growing competition from domestic rivals, particularly Huawei.
Industry analysts point out that a major disadvantage for Apple in the Chinese market is its lack of advanced AI capabilities (the key selling point of the latest generation of smartphones).
Apple suffered a notable setback in China in 2024, losing its crown as one of the nation’s leading smartphone vendors. For the first quarter of the first quarter, which ended December 28th, Apple’s Greater China Sales rose 11% to $185.1 billion.