Alibaba has partnered with Apple to support iPhones’ AI services in China, marking a significant win for the Chinese tech giant in the country’s competitive AI market. The deal is expected to help Apple ease its declining smartphone sales in China, where local rivals such as Huawei are gaining ground.
The partnership will allow Apple to tap into Alibaba’s AI capabilities, which have been making waves in the industry with models developed at a fraction of the cost of Western rivals. This move resolves months of speculation over Apple’s AI strategy in the region and cements Alibaba’s position as a leader in China’s AI market.
Alibaba shares surged more than 9% to reach their highest level in three years, driven by the news. Analysts predict that this partnership will have a positive impact on Apple’s smartphone sales in China, where consumer-facing AI products require regulatory approval.
Industry experts note that the integration comes at a critical time for Apple, which has faced declining iPhone sales in China due to its lack of advanced AI features. The partnership is seen as a major boost for Alibaba, which has been gaining traction among investors with its stock price increasing by over 40% this year.
The news highlights the growing importance of AI in the tech industry and the competitive landscape in China’s smartphone market. With Apple and Alibaba teaming up on AI, consumers can expect to see more advanced features in iPhones, which could give the company an edge over local rivals.
Source: https://www.reuters.com/technology/artificial-intelligence/alibaba-chairman-confirms-ai-partnership-with-apple-chinese-iphones-2025-02-13