Investing.com-- Alibaba (NYSE:BABA) Group’s (HK:9988) Hong Kong-listed shares surged to a four-month high on Wednesday following reports of a strategic partnership with Apple Inc (NASDAQ:AAPL) to develop artificial intelligence (AI) features for iPhones in China.
Apple selected Alibaba for this initiative after evaluating AI models from other Chinese tech giants, including Baidu (NASDAQ:BIDU) Inc (HK:9888), Tencent (HK:0700), ByteDance, and Deepseek, The Information reported on Tuesday citing sources.
The decision was influenced by Alibaba’s extensive user data and technological expertise, which are expected to provide more personalized services to Chinese consumers, the report said.
Alibaba shares surged more than 8% to HK$113.90, their highest level since early October 2024.
Both companies have reportedly submitted their co-developed AI features to China’s cyberspace regulator for approval, with plans to launch the services in April.
Alibaba’s AI models, developed under its Tongyi Qianwen framework, are expected to help Apple Intelligence better understand Chinese users’ requests and habits, the report stated.
Apple found that DeepSeek’s team lacked the resources necessary to support Apple Intelligence at the level required for seamless integration with iPhones, The Information’s report noted.