Apple is collaborating with Alibaba to introduce artificial intelligence features for iPhone users in China, according to a report by Reuters citing The Information. The two companies have submitted their jointly developed AI features for approval by China's cyberspace regulator.
Following the announcement, Alibaba's Hong Kong-listed shares rose by 8 percent, closing at 113.3 Hong Kong dollars on Wednesday. Apple's stock also saw a 2 percent increase compared to the previous trading day.
Last year, Apple had chosen Baidu as its primary AI partner. However, Baidu's progress in developing models for Apple Intelligence did not meet the company's standards, as reported.
Subsequently, Apple evaluated models developed by Tencent, ByteDance—the parent company of TikTok—as well as Alibaba and Deepseek. The partnership with Deepseek was not pursued due to the startup’s limited manpower and experience to support Apple's extensive customer base.
Both Apple and Alibaba have not yet responded to Reuters' requests for comment.
The rollout of advanced AI tools is particularly significant as iPhone sales experienced a dip in the holiday quarter, typically Apple's peak sales period, due to the absence of expected AI features in its latest devices.
Despite this setback, Apple has projected strong sales growth in the current quarter, raising hopes for a rebound in iPhone demand.
The Information's report indicates that Apple's decision to partner with Alibaba was partly influenced by the vast amounts of personal data Alibaba possesses on user shopping and payment behaviors. This data is anticipated to aid in training AI models and delivering more personalized services.
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Alibaba shares soar after reported AI partnership with Apple
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