Due to local regulations, Apple needs a Chinese partner to offer its AI services in China. It had been expected to work with Baidu, but chose not to do so. Deepseek was also considered, but as a small start-up there were concerns it would not scale to meet Apple-driven demand.

Alibaba Group’s stock surged up to 8.6% following reports about Apple linking up with the e-commerce giant to roll out AI features for iPhone users in China. For Alibaba, securing a deal with Apple is no less than a breakthrough.

Shares of Chinese e-commerce giant Alibaba rose in premarket trade after reports it’s partnering with Apple to roll out artificial-intelligence features for phones sold in China.

Key Takeaways Apple is reportedly partnering with Chinese firm Alibaba to develop artificial intelligence features for iPhones in China.Apple Intelligence is a key selling point of iPhone 16, but the service has been unavailable in China since its October launch.

Alibaba is teaming up with Apple to develop artificial intelligence features for iPhone users in China. Alibaba shares jumped over 7 percent after announcing a partnership with Apple. (Camera: ALEX PLAVEVSKI).

Apple is partnering with Alibaba Group to introduce artificial intelligence features in China, strengthening its position in a crucial market where it has struggled to establish a strong AI presence.