Alibaba and Apple Join Forces to Bring AI Features to iPhones in China

Alibaba wins prized role powering AI on Apple's iPhone in China

Apple's iPhones will use Alibaba Group's AI technology, the Chinese firm's chairman said, affirming reports that the e-commerce pioneer had scored a coveted role in helping power the iPhone in the world's top mobile arena. A local partner could help revive iPhone sales in China, which have suffered as rivals such as Huawei move ahead with AI-enabled smartphones. Apple has yet to provide its full suite of AI features in China because of regulations that require it to partner with a locally accredited company. Alibaba Chairman Joseph Tsai expects that to be the case for the long term, but didn't specify if Alibaba would be the exclusive AI provider for Apple. For Alibaba, securing Apple's endorsement marks a win in the highly competitive domestic AI market. On Thursday, Baidu announced it was making its flagship AI chatbot free, making its own foray to grab a larger slice of the market. "Apple has been very selective. They talked to a number of companies in China, and in the end they choose to do business with us," Tsai told Jeffrey Katzenberg during an interview at the World Government Summit in Dubai. "They want to use our AI to power their phones." The iPhone maker has yet to officially unveil a long-term partner for its AI offerings in the country, after signing a landmark deal with OpenAI to integrate ChatGPT into iPhones internationally. China is Apple's most important market after the U.S., the biggest market for smartphones, computing and artificial intelligence. But it reported an 11% decline in revenue from China over the holiday quarter, in part because it's struggling to fend off Huawei and other rivals. Representatives for the company didn't respond to requests for comment. Alibaba's win comes at a pivotal moment for Chinese AI and the company in particular, which gained more than $80 billion of market value in 2025 following a turbulent few years. It marks a surprise reversal of fortunes for a once-dominant internet leader that fell out of favor among investors during Beijing's clampdown on tech behemoths and a post-COVID consumption slump. Behind the rally is optimism about Alibaba's efforts to develop its own AI services and platform, which gained traction after AI startup DeepSeek unveiled technologies that caused a rout on Wall Street. Alibaba's financial results scheduled Thursday are expected to offer investors an opportunity to learn about the company's progress on its AI models. "The emergence of DeepSeek has sparked a new AI-related catalyst for Chinese tech stocks," said Andy Wong, investment and environmental, social and governance director for Asia Pacific at Solomons Group. "Within this space, we see Alibaba as having more tangible and well-established earnings growth prospects in the medium term." Tsai, one of Alibaba co-founder Jack Ma's earliest lieutenants, paid tribute to his former boss in Dubai. He spent much of his time talking up Ma as a visionary leader, recounting the early days of their founding story. "We need an old pair of hands," Tsai said onstage.

Apple Focuses On Alibaba, Baidu Partnership In Race To Bring AI Features To China by Mid-2025 - Alibaba Gr Hldgs (NYSE:BABA)

U.S.-listed Chinese stocks continue to gain steam after the country introduced DeepSeek and Alibaba Group Holding's BABA affordable AI models. Alibaba Chair Joseph Tsai confirmed to Bloomberg that Apple Inc AAPL iPhones will use Alibaba's AI technology. Reportedly, Apple submitted AI features that were co-developed with Alibaba for China's approval. Also Read: Not Just DeepSeek, China's AI Landscape Heats Up As Baidu Launches Free Ernie Bot Apple's move marks its focus on boosting its position in China, as the lack of Apple Intelligence capability in current iPhones in the country and government-incentivized local vendors have cost it its market share. China also mandated that international companies collaborate with domestic companies as a primary partner, which prompted Apple to partner with Baidu Inc BIDU. Apple continued its partnership with Baidu on AI features for the Chinese market, the Information reported. Baidu is developing AI-based search features for Apple to enhance image and text processing and improve the Chinese-language Siri experience. Apple had initially considered Baidu to be its leading AI model partner, but it did not materialize. Apple has also explored Tencent Holding TCEHY, ByteDance, and DeepSeek's AI models. By 2028, Counterpoint expects most smartphones priced above $250 to be Generative AI-capable. Apple's China revenues have fallen for six consecutive quarters as competitors Huawei and Xiaomi XIACF XIACY have gained a market share. BofA Securities' Wamsi Mohan expects Apple to regain its lost ground in China by launching Apple Intelligence. China is Apple's second-most important market after the U.S., and it is the biggest market for smartphones, computing, and artificial intelligence. Apple is amid efforts to bring its AI features to China by the middle of 2025, Bloomberg reported, citing unnamed sources familiar with the matter. The iPhone maker has teams in China and the U.S. working to acclimate its Apple Intelligence platform for the country, aiming for a launch by May. Alibaba Group stock surged 63% in the last 12 months. Investors can gain exposure to Alibaba through Invesco Golden Dragon China ETF PGJ and ProShares Online Retail ETF ONLN. Price Action: BABA stock is up 6.16% at $126.90 premarket at the last check Friday. BIDU is up 3.15%. Also Read: DeepSeek Impact? Billionaire David Tepper Bets Big on China, Increases Stakes in Alibaba, JD.com, And PDD Photo via Shutterstock BABAAlibaba Group Holding Ltd$126.575.88%Overview Rating:Speculative50%Technicals Analysis660100Financials Analysis400100WatchlistOverviewAAPLApple Inc$240.72-0.34%BIDUBaidu Inc$99.603.12%JDJD.com Inc$42.076.26%ONLNProShares Online Retail ETF$50.650.26%PDDPDD Holdings Inc$126.053.71%PGJInvesco Golden Dragon China ETF$30.853.77%TCEHYTencent Holdings Ltd$61.105.75%XIACFXiaomi Corp$5.54-%XIACYXiaomi Corp$28.755.31%Market News and Data brought to you by Benzinga APIs

Alibaba's big comeback: Can the Apple alliance reshape AI in China?: By Prakash Bhudia

After years of regulatory setbacks and economic hurdles, Alibaba is revving for a comeback, and its partnership with Apple could be the turning point. As they prepare to roll out AI features designed for the Chinese market, will this collaboration reshape the AI landscape in China? Once heralded as a titan of e-commerce and technology, Alibaba found itself in turbulent waters over the past few years. The Chinese government's tightening grip on technology companies, coupled with a slump in domestic consumption, severely impacted Alibaba's growth trajectory. Yet, as the new year unfolds, Alibaba is experiencing a remarkable comeback. Its stock surged more than 30% in 2025, driven by renewed investor optimism and a strategic pivot toward AI innovation. This turnaround has been anchored by the company's focus on harnessing its vast consumer data, a critical asset that could enhance personalized AI offerings. Data from millions of users navigating Alibaba's e-commerce platforms presents an unparalleled opportunity for both personalized consumer experiences and cutting-edge AI applications. The recent announcement that Apple is collaborating with Alibaba to roll out AI features specifically for the Chinese market marks a significant strategic move for both giants. This partnership positions Alibaba not only as a key local player but also as a vital bridge for Apple into the world's largest internet market. Apple's long-standing struggles to penetrate China-largely due to fierce local competition from brands like Huawei-could find a remedy through this local alliance. Experts believe that this partnership could redefine how Apple engages with its Chinese consumer base. With Alibaba's wealth of insights on consumer behaviors and preferences, Apple can leverage this data to create services that resonate more deeply with local users. Morgan Stanley analyst Erik Woodring emphasizes that Alibaba, being the largest e-commerce player in China, holds a vast amount of data that Apple can leverage to offer personalized generative AI features to Chinese consumers. The AI arms race has ignited fierce competition among tech companies worldwide, and China is no exception. With players like Baidu, Tencent, and ByteDance developing their own AI innovations, the landscape is rife with obstacles and opportunities. For Alibaba, securing a partnership with Apple, a globally recognized brand known for its innovation, could offer a crucial advantage. In an age where AI is set to shape the future of technology and consumer engagement, this strategic alliance holds promise. The potential integration of AI into Apple's existing product ecosystem could enhance user experience, revive Apple's struggling sales in China, and bolster Alibaba's significance in the AI domain. However, the path forward is not without challenges. The Chinese regulatory environment remains stringent, particularly concerning AI technologies. Companies must navigate a complex approval process before deploying new AI features, which has historically complicated the operations of foreign firms. Apple's previous partnership with OpenAI has been hindered by direct restrictions, and while this collaboration with Alibaba may mitigate some of those challenges, navigating the regulatory landscape will still require careful strategy. Alibaba's established footprint in China may provide Apple an advantage in securing the necessary approvals more swiftly, yet the intricacies of local regulations will demand meticulous attention and agile adaptation. As the partnership between Alibaba and Apple unfolds, the implications for the AI landscape in China could be profound. Should the alliance succeed, it may not only rejuvenate Alibaba's market position but could also redefine how AI is integrated into consumer products. By tapping into Alibaba's data-rich ecosystem, Apple could craft tailored experiences that resonate with Chinese consumers, potentially setting new standards in the burgeoning AI market. The journey toward AI supremacy may very well depend on this collaboration-and the broader implications could shape the future of technology in China and beyond. At the time of writing, BABA is testing highs of $119, a huge uptick since the beginning of the year. Upside bias is clear with a possibility of even higher highs. However, prices hitting the upper boundary of the bollinger bands hints at overbought conditions, with RSI towering slightly past 70 adding to the narrative. Buyers could face a test at the $120 price level. If a major slump were to happen prices would likely hold at the $100 price level, with a further slide likely holding at the moving average. The information contained within this blog article is for educational purposes only and is not intended as financial or investment advice. We recommend you do your own research before making any trading decisions. This information is considered accurate and correct at the date of publication. Changes in circumstances after the time of publication may impact the accuracy of the information.

Alibaba Shares Surge After Progress in Apple Partnership

Alibaba's shares surged as the e-commerce giant made progress in its partnership with Apple to roll out artificial-intelligence features in China. Apple recently submitted Apple Intelligence features for China, developed with Alibaba, for approval by the country's cyberspace regulator, a person familiar with the matter said. The review process could take months, the person said. The news, earlier reported by The Information, sent Alibaba's shares 6.7% higher to 111.90 Hong Kong dollars, equivalent to $14.36, at midday, on track for their biggest daily gain since September. Apple rolled out Apple Intelligence last year, a new AI tool which includes an improved Siri voice assistant as well as a variety of text-generation and photo-editing capabilities. Chinese regulators require Apple to work with local companies to develop the generative AI services it plans to release in the country. Apple has been talking with major Chinese AI model providers since last spring. The iPhone maker was primarily working with Chinese search engine company Baidu until their collaboration ran into snags late last year, according to people familiar with the matter. In China, Apple has faced pressure from local rivals, such as Huawei, which sell phones with AI functions. Apple's revenue from the Greater China region fell 11% in the quarter ended December, a drop that Chief Executive Tim Cook said was partly because Apple Intelligence wasn't available in China. Alibaba provides a conversational chatbot service, Qwen, and has released models ranked highly for their performance by global researchers in Chatbot Arena. It has also embedded AI models into its e-commerce services. Apple didn't immediately respond to a request for comment. Write to Raffaele Huang at raffaele.huang@wsj.com and Tracy Qu at tracy.qu@wsj.com

Alibaba Becomes China's New AI Darling With $87 Billion Rally

(Bloomberg) -- The frenzy over Chinese artificial intelligence is turning Alibaba Group Holding Ltd. into an investor favorite again, injecting new life into an e-commerce giant that had nearly sunk into obscurity following a years-long regulatory crackdown. Alibaba's Hong Kong-listed shares have surged 46% since hitting a 2025 low on Jan. 13, expanding its market value by nearly $87 billion and exceeding the Hang Seng Tech Index's 25% gain in the same period. That makes the stock by far the best performer in China's Big Tech universe in the new year, outshining rivals Tencent Holdings Ltd., Baidu Inc. and JD.com Inc. Follow The Big Take daily podcast wherever you listen. It marks a surprise reversal of fortunes for Alibaba, which had fallen out of favor among investors after its business suffered from Beijing's clampdown on the country's tech behemoths and a post-Covid consumption slump. Behind the rally is optimism about Alibaba's efforts to develop its own AI services and platform, which gained traction after Chinese AI startup DeepSeek unveiled technologies that caused a rout on Wall Street. Alibaba's shares got another shot in the arm on Wednesday, after the Information reported that Apple Inc. is working with the e-commerce pioneer to roll out AI features in China. DeepSeek Sparks Hope for Renaissance in China's Tech Megacaps "The emergence of DeepSeek has sparked a new AI-related catalyst for Chinese tech stocks," said Andy Wong, investment and ESG director for Asia Pacific at Solomons Group. "Within this space, we see Alibaba as having more tangible and well-established earnings growth prospects in the medium term." All About DeepSeek and Its Lower-Cost AI Model: QuickTake Alibaba's 2025 bounceback is the culmination of a year-long turnaround spearheaded by two of Jack Ma's oldest lieutenants: Joe Tsai and Eddie Wu. The chairman and CEO, part of the original founding team that created Taobao in Ma's lakeside apartment, took the helm in 2023 right after years of Beijing-led regulatory investigations and a post-Covid downturn gutted its cloud and consumer businesses. They took the company back to basics, initially focusing on consolidating and streamlining the fragmented core commerce business. They also decided to go big in AI. Since the advent of ChatGPT, Alibaba has invested in a clutch of China's most promising startups, including Moonshot and Zhipu. And it prioritized the expansion of the cloud business that underpins AI development, slashing prices to win back the customers that fled to rivals during the turbulent years. It also decided to spend on AI, joining a race led by Baidu at the time. In January, that effort yielded initial fruit. Alibaba published benchmark scores showing its Qwen 2.5 Max edition scored better than Meta Platforms Inc.'s Llama and DeepSeek's V3 model in various tests. The company is now considered a leading player in AI alongside big names from Tencent to ByteDance Ltd. and startups including Minimax and Zhipu. But it's still early days. A key hurdle facing Chinese AI firms has been the slower adoption and lack of willingness to pay for services among domestic consumers and businesses. "Many hedge funds and long-only investors see AI as a potential inflection point for Alibaba, with some expressing interest in understanding the valuation of Alibaba's cloud business and any upside from large language models," JPMorgan Chase & Co. analysts including Alex Yao wrote in a note. "The AI narrative is seen as a driver for potential re-rating, but there are concerns about the monetization of AI capabilities." In addition, cloud business growth for Chinese hyperscalers has lagged that of major US peers so far. Analysts estimate cloud revenues for the December quarter rose 9.7% from a year ago at Alibaba and 7.7% at Baidu, compared with 19% at Amazon.com Inc. and 31% at Microsoft Corp. Alibaba's financial results scheduled next Thursday are expected to offer investors a fresh opportunity to learn about the company's progress on its AI models and outlook for its cloud services. Despite the lingering question marks, Alibaba's valuations remain attractive to some investors even after the latest rally. Its shares are trading at 12.2 times forward earnings, below its five-year average of 14.6 times. "Despite the rally, Alibaba's stock is still undervalued compared to its US tech peers, considering its growth potential and market position," said Manish Bhargava, chief executive officer at Straits Investment Management in Singapore. "The company is expanding its overseas marketplaces, which could reduce its reliance on the domestic Chinese market and drive future growth."

Alibaba becomes China's new AI darling with $87 billion rally

Alibaba's Hong Kong-listed shares have jumped 46% since reaching a 2025 low on January 13, adding nearly $87 billion to its market value and outpacing the Hang Seng Tech Index's 25% gain. The rally is driven by optimism over Alibaba's AI services and platform development, following the release of Chinese AI startup DeepSeek's technologies, which shook Wall Street.The frenzy over Chinese artificial intelligence is turning Alibaba Group Holding Ltd. into an investor favourite again, injecting new life into an ecommerce giant that had nearly sunk into obscurity following a years-long regulatory crackdown. Alibaba's Hong Kong-listed shares have surged 46% since hitting a 2025 low on January 13, expanding its market value by nearly $87 billion and exceeding the Hang Seng Tech Index's 25% gain in the same period. That makes the stock by far the best performer in China's Big Tech universe in the new year, outshining rivals Tencent Holdings Ltd., Baidu Inc. and JD.com Inc. It marks a surprise reversal of fortunes for Alibaba, which had fallen out of favour among investors after its business suffered from Beijing's clampdown on the country's tech behemoths and a post-Covid consumption slump. Behind the rally is optimism about Alibaba's efforts to develop its own AI services and platform, which gained traction after Chinese AI startup DeepSeek unveiled technologies that caused a rout on Wall Street. Alibaba's shares got another shot in the arm on Wednesday, after the Information reported that Apple Inc. is working with the ecommerce pioneer to roll out AI features in China. "The emergence of DeepSeek has sparked a new AI-related catalyst for Chinese tech stocks," said Andy Wong, investment and ESG director for Asia Pacific at Solomons Group. "Within this space, we see Alibaba as having more tangible and well-established earnings growth prospects in the medium term." Alibaba's 2025 bounceback is the culmination of a year-long turnaround spearheaded by two of Jack Ma's oldest lieutenants: Joe Tsai and Eddie Wu. The chairman and CEO, part of the original founding team that created Taobao in Ma's lakeside apartment, took the helm in 2023 right after years of Beijing-led regulatory investigations and a post-Covid downturn gutted its cloud and consumer businesses. They took the company back to basics, initially focusing on consolidating and streamlining the fragmented core commerce business. They also decided to go big in AI. Since the advent of ChatGPT, Alibaba has invested in a clutch of China's most promising startups, including Moonshot and Zhipu. And it prioritized the expansion of the cloud business that underpins AI development, slashing prices to win back the customers that fled to rivals during the turbulent years. It also decided to spend on AI, joining a race led by Baidu at the time. In January, that effort yielded initial fruit. Alibaba published benchmark scores showing its Qwen 2.5 Max edition scored better than Meta Platforms Inc.'s Llama and DeepSeek's V3 model in various tests. The company is now considered a leading player in AI alongside big names from Tencent to ByteDance Ltd. and startups including Minimax and Zhipu. But it's still early days. A key hurdle facing Chinese AI firms has been the slower adoption and lack of willingness to pay for services among domestic consumers and businesses. "Many hedge funds and long-only investors see AI as a potential inflection point for Alibaba, with some expressing interest in understanding the valuation of Alibaba's cloud business and any upside from large language models," JPMorgan Chase & Co. analysts including Alex Yao wrote in a note. "The AI narrative is seen as a driver for potential re-rating, but there are concerns about the monetization of AI capabilities." In addition, cloud business growth for Chinese hyperscalers has lagged that of major US peers so far. Analysts estimate cloud revenues for the December quarter rose 9.7% from a year ago at Alibaba and 7.7% at Baidu, compared with 19% at Amazon.com Inc. and 31% at Microsoft Corp. Alibaba's financial results scheduled next Thursday are expected to offer investors a fresh opportunity to learn about the company's progress on its AI models and outlook for its cloud services. For now, derivative traders are boosting their bets. Options contract volumes surged to more than twice the 20-day average on Wednesday in Hong Kong, reaching their highest level in over four months. More than 110,000 bullish contracts changed hands, compared with over 74,000 puts. The cost of hedging against declines in the coming month has dropped to near its lowest level since November. Alibaba's valuations remain attractive to some investors even after the latest rally. Its shares are trading at 12.2 times forward earnings, below its five-year average of 14.6 times. "Despite the rally, Alibaba's stock is still undervalued compared to its US tech peers, considering its growth potential and market position," said Manish Bhargava, chief executive officer at Straits Investment Management in Singapore. "The company is expanding its overseas marketplaces, which could reduce its reliance on the domestic Chinese market and drive future growth."

Alibaba Reportedly Revitalized by China's AI Fever | PYMNTS.com

Interest in artificial intelligence (AI) has reportedly led to a turnaround for China's Alibaba. As Bloomberg News reported Wednesday (Feb. 12), the eCommerce conglomerate had virtually slunk into obscurity after a long regulatory crackdown in China. But in recent weeks, the report said, its stock has jumped 46%, expanding its market value by close to $87 billion. The reason? Enthusiasm for the company's efforts to create its own AI services and platform, something that gained fuel when Chinese startup DeepSeek released a model that caused a number of American tech stocks to plunge. Then came a report this week from The Information that Apple had teamed up with Alibaba to launch AI features on its iPhones sold in China. Apple rolled out its AI features last year after the launch of the iPhone 16. But the company had to delay the introduction of its "Apple Intelligence" in China, due to a government rule requiring Apple to work with local tech developers in building AI models for devices sold there. "The emergence of DeepSeek has sparked a new AI-related catalyst for Chinese tech stocks," Andy Wong, investment and ESG director for Asia Pacific at Solomons Group, told Bloomberg. "Within this space, we see Alibaba as having more tangible and well-established earnings growth prospects in the medium term." Bloomberg also notes that Chinese AI companies face a significant hurdle: consumers and businesses in that country have been slower to adopt and less willing to pay for services. "Many hedge funds and long-only investors see AI as a potential inflection point for Alibaba, with some expressing interest in understanding the valuation of Alibaba's cloud business and any upside from large language models," JPMorgan Chase analysts wrote in a note, per Bloomberg. "The AI narrative is seen as a driver for potential re-rating, but there are concerns about the monetization of AI capabilities." In other AI news, PYMNTS wrote Wednesday about new research showing that 82% of workers who use generative artificial intelligence (GenAI) each week believe it can increase productivity. But as familiarity with GenAI increases, so too do worries about job displacement. The research found that half of workers who use GenAI weekly are concerned that the technology could someday eliminate their job, compared to 24% of those unfamiliar with it. "As workers gain a better understanding of GenAI's capabilities, they are becoming more aware of the possible risks to their jobs," that report said. "Those who use GenAI weekly are much more likely to believe it can replace aspects of their job compared to those unfamiliar with the technology."

Alibaba's Stock Surges After Investors Buy Into iPhone AI Hopes

The stock climbed its most since October after the tech outlet, citing one unidentified source, said Apple and Alibaba have submitted AI features for approval to China's cyberspace regulator. Shares of Baidu Inc., considered a candidate to provide AI services, were largely unchanged in Hong Kong.

Alibaba drives Hong Kong shares higher, China stocks steady

Hong Kong shares rose 1.4% on Wednesday, led by a 6.7% surge in Alibaba shares amid AI-driven revaluation opportunities. Apple's partnership with Alibaba to enhance AI features for iPhones in China boosted the tech sector. However, Baidu fell 3.5% on lagging AI model development. Tech stocks including Lenovo and BYD Electronic also saw gains.Hong Kong shares rose on Wednesday, led by a rally in Alibaba shares, as the market was fuelled by AI-driven revaluation opportunities. China stocks were roughly flat. ** China's blue-chip CSI300 Index edged down 0.1% by the lunch break, while the Shanghai Composite Index were flat. Hong Kong benchmark Hang Seng was up 1.4%. ** Alibaba's Hong Kong shares surged 6.7%, hitting a four-month peak on Wednesday, after the Information reported Apple is partnering with the Chinese tech giant to roll out artificial intelligence features for iPhone users in China. ** Baidu shares fell 3.5%. Apple had selected Baidu as its main partner last year, but the Chinese company's progress in developing models for Apple Intelligence fell short of its standards, the report said. ** Tech major traded in Hong Kong rose 1.2%, with Lenovo Group and BYD Electronic up 4.6% and 6.2%, respectively. ** "Technology fuelled rallies typically saw share prices rise ahead of earnings and this year, with ample liquidity and lower interest rates, we see valuation re-rating opportunities ahead for AI-related names," said UBS strategist James Wang. ** "The internet companies are likely to be longer-term beneficiaries of cheaper AI models and remain attractive given the cheap valuation and capital return initiatives on offer," Wang said. ** AI-shares traded onshore were up 0.9%, outperforming other sectors. ** Global investors are starting to reassess China's investability within the tech and AI space, as U.S.-China competition has expanded from trade or tariffs to high-end manufacturing and AI, said equity strategists at Morgan Stanley. ** Shares of Chinese bubble tea maker Guming were roughly flat on the Hong Kong Stock Exchange trading debut after the company raised $232 million in an initial public offering.

Alibaba Becomes China's New AI Darling With $87 Billion Rally

The frenzy over Chinese artificial intelligence is turning Alibaba Group Holding Ltd. into an investor favorite again, injecting new life into an e-commerce giant that had nearly sunk into obscurity following a years-long regulatory crackdown. Alibaba's Hong Kong-listed shares have surged 46% since hitting a 2025 low on Jan. 13, expanding its market value by nearly $87 billion and exceeding the Hang Seng Tech Index's 25% gain in the same period. That makes the stock by far the best performer in China's Big Tech universe in the new year, outshining rivals Tencent Holdings Ltd., Baidu Inc. and JD.com Inc.