Alibaba Group has announced a groundbreaking partnership with Apple to integrate advanced artificial intelligence features into iPhones sold in the Chinese mainland. The collaboration was confirmed by Alibaba Chairman Joe Tsai on Thursday at the World Governments Summit in Dubai.
“They talked to a number of companies in China. In the end, they chose to do business with us. They want to use our AI to power their phones. We feel extremely honored to do business with a great company like Apple,” Tsai stated.
The news sent Alibaba’s Hong Kong-listed shares soaring over 9 percent to a three-year high of HK$124.3 (approximately $15.96). Investors are optimistic about the potential impact of this alliance on both companies.
The AI integration comes at a crucial time for Apple, which has faced declining iPhone sales in the Chinese mainland amid stiff competition from domestic rivals like Huawei and Vivo. Industry analysts have highlighted the lack of advanced AI features as a significant disadvantage for Apple in the region’s competitive smartphone market.
In recent years, Alibaba has emerged as a leader in AI technology. Early in 2023, the company released its Qwen 2.5 AI model, boasting functionality that surpasses other models in capability and cost-effectiveness. This advancement has positioned Alibaba as a favored choice among investors and tech partners alike.
The partnership is expected to enhance the user experience for iPhone users in the Chinese mainland by incorporating Alibaba’s cutting-edge AI into Apple’s devices. This move could potentially help Apple regain its footing in one of the world’s largest smartphone markets.
