“Buckle up, tech enthusiasts! The marriage of two giants is sending shockwaves through the industry, and we’re about to dive into the details. In a move that’s sending Alibaba’s shares soaring to a three-year high, the e-commerce behemoth is partnering with none other than Apple to take AI features to the next level. This unprecedented collaboration between two of the world’s most influential tech companies has the potential to revolutionize the way we interact with technology. As we delve into the specifics of this partnership, we’ll explore what this means for the future of artificial intelligence, the implications for the tech industry, and what this could mean for the average consumer. So, grab your popcorn and get ready to geek out with us as we dive into the fascinating world of AI and the Alibaba-Apple alliance!”
Alibaba to Partner with Apple on AI Features, Sending Shares to 3-Year High
By Casey Hall, Gizmoposts24
SHANGHAI (Reuters) – Alibaba will partner with Apple to support iPhones’ AI services offering in China, its chairman said on Thursday, a move likely to help the U.S. company ease falling smartphone sales in its key market.
For Alibaba, the partnership is a major win in China’s competitive AI market that is home to DeepSeek, which made headlines this year with models developed at a fraction of the cost of Western rivals.
The landmark deal also resolves months of speculation over Apple’s AI strategy in the region as the iPhone maker had been in talks with Chinese tech leaders including Baidu, ByteDance and Tencent, Reuters and Gizmoposts24 have reported.
“They talked to a number of companies in China. In the end they chose to do business with us. They want to use our AI to power their phones. We feel extremely honoured to do business with a great company like Apple,” Tsai said at the World Government Summit in Dubai.
Details of the Partnership
While Apple’s phones outside China utilize a combination of its proprietary Apple Intelligence and OpenAI’s ChatGPT, Tsai did not specify whether the Alibaba partnership would follow a similar model.
In China, consumer-facing AI products require regulatory approval, and Gizmoposts24 reported earlier that both Alibaba and Apple have already submitted materials to authorities.
Impact on Apple’s Intelligent Assistant
“Instead of viewing the Alibaba-Apple partnership through the lens of China’s AI strength, the partnership is mainly a recognition of Alibaba’s AI capability,” said Lian Jye Su, a chief analyst at tech research firm Omdia.
Other analysts said the impact for Apple would depend on how fast it rolled out features in China.
“It won’t be an easy fight as the local competitors have been aggressively marketing their own AI features,” said Will Wong, an analyst with research firm IDC.
CRITICAL TIME FOR APPLE
A Decline in Smartphone Sales in China
Industry analysts have pointed to the absence of advanced AI features – a key selling point in latest-generation smartphones – as a significant disadvantage for Apple in the Chinese market.
Apple suffered a notable setback in China in 2024, losing its crown as the country’s leading smartphone vendor.
For its fiscal first quarter ended Dec. 28, Apple’s Greater China sales plunged by 11% to $18.51 billion.
Story Continues According to market research firm Canalys, Apple’s annual shipments in China fell 17%, allowing domestic manufacturers to surge ahead.
- Vivo captured the largest market share at 17%,
- Huawei secured second place with 16%,
- and Apple secured third place with 15% of the market.
Alibaba’s Rise to Prominence
A Strong Showing in AI Research
Alibaba has become a Chinese AI favourite among investors early in 2025, with its stock price up more than 40% so far this year.
The firm in late January released a new version of its Qwen 2.5 artificial intelligence model whose functionality it said surpassed that of DeepSeek-V3, which caused a stir earlier this year for its capability and low cost.
Conclusion
In conclusion, the recent announcement of Alibaba’s partnership with Apple to integrate AI features has sent the company’s shares soaring to a three-year high. The collaboration, which combines the e-commerce giant’s vast customer base with Apple’s innovative technology, is a significant development in the rapidly evolving world of artificial intelligence. As discussed in the article, this partnership has the potential to revolutionize the way businesses operate, providing customers with enhanced personalized experiences and improving operational efficiency.
The implications of this partnership are far-reaching, with potential applications in various industries, from retail and finance to healthcare and education. As AI continues to transform the way we live and work, this collaboration demonstrates the importance of strategic partnerships in driving innovation and growth. Moreover, this development reinforces Alibaba’s position as a leader in the AI space, solidifying its commitment to investing in cutting-edge technology to stay ahead of the curve.
As we look to the future, it is clear that this partnership is just the beginning of a new era of collaboration and innovation. As AI continues to shape the business landscape, we can expect to see more bold partnerships between industry giants, driving exponential growth and transformation. As Alibaba and Apple continue to push the boundaries of what is possible, one thing is certain: the future of AI is bright, and the possibilities are endless. With this partnership, the stage is set for a new wave of technological advancements that will reshape the world as we know it.
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