Alibaba's stock jumped 8% in Hong Kong trading Wednesday following reports of a landmark AI partnership with Apple aimed at boosting iPhone functionality for users in the Chinese mainland. According to The Information, the companies co-developed AI features now awaiting approval from China's cyberspace regulator.
Apple reportedly pivoted to Alibaba after previous collaborations with Baidu and evaluations of Tencent and ByteDance fell short of technical or scalability benchmarks. Analysts suggest Alibaba's access to user shopping and payment behavior data gives it an edge in training personalized AI tools.
The deal comes as Apple seeks to reverse slowing iPhone sales – down during its typically lucrative holiday quarter – by integrating cutting-edge AI capabilities. Shares of both companies rose sharply, with Apple gaining 2% in U.S. trading.
If approved, the partnership could set a precedent for cross-border tech collaborations in regulated markets. Apple projects renewed sales growth this quarter, with investors watching how quickly AI enhancements reach consumers.
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Alibaba shares soar after reported AI partnership with Apple
cgtn.com
