Alibaba’s shares soared as reports emerged of a potential partnership with Apple to bring advanced artificial intelligence features to iPhone users in China.
According to a report by The Information, cited by Reuters on Tuesday, Apple is collaborating with Alibaba to develop new AI capabilities. The two tech giants have reportedly submitted their co-developed AI features for approval by China’s cyberspace regulator.
Following the news, Alibaba’s Hong Kong-listed shares jumped 8% to 113.3 Hong Kong dollars at the close of trading on Wednesday. Apple’s stock also saw a 2% increase during the previous trading day.
Initially, Apple had partnered with Baidu last year to enhance its AI offerings. However, according to the report, Baidu’s progress did not meet Apple’s expectations. This led Apple to explore other potential collaborators, including Tencent, ByteDance, Alibaba, and Deepseek.
Apple ultimately chose Alibaba, with sources suggesting that the decision was partly influenced by Alibaba’s extensive data on users’ shopping and payment habits. This wealth of information could help train AI models and deliver more personalized services to users.
Rolling out these AI tools is crucial for Apple, especially after experiencing a dip in iPhone sales during the holiday quarter—a period that is typically the company’s peak sales season. The lack of compelling AI features was cited as a factor contributing to the slowdown. However, Apple has forecast strong sales growth in the current quarter, fueling hopes for a rebound in iPhone demand.
Both Apple and Alibaba have not immediately responded to requests for comment regarding the reported partnership.
