Alibaba Stock Surges as Apple Chooses Its AI for iPhones in China

Alibaba Group’s (HK:9988, NYSE:BABA) Hong Kong-listed shares hit a four-month high on Wednesday, surging over 8% to HK$113.90, after reports of a strategic AI partnership with Apple Inc. (NASDAQ:AAPL).

Apple reportedly selected Alibaba’s AI model under its Tongyi Qianwen framework to enhance iPhone AI features in China, favoring it over competitors like Baidu (NASDAQ:BIDU, HK:9888), Tencent (HK:0700), ByteDance, and Deepseek, according to The Information.

Alibaba's extensive user data and advanced AI capabilities played a key role in Apple's decision, ensuring more personalized experiences for Chinese consumers. Both companies have submitted their AI-powered features for approval by China’s cyberspace regulator, with plans for an official launch in April.

The partnership marks a significant move in Apple’s localization strategy, integrating Alibaba’s AI to improve the functionality of Apple Intelligence for Chinese users. DeepSeek was reportedly considered but lacked the necessary resources for seamless iPhone integration.

This collaboration underscores Alibaba’s growing influence in AI and strengthens its position in China’s competitive tech landscape. With the anticipated rollout of AI-driven features, both companies could see increased market engagement, further boosting Alibaba's stock momentum.