Alibaba Secures AI Deal with Apple, Strengthening Position in China
Alibaba has achieved a major milestone in China’s technology market by securing an artificial intelligence (AI) deal with American tech giant Apple. Under this agreement, Alibaba’s AI technology will be used to power AI features in iPhones within China. This development further solidifies Alibaba’s standing in the highly competitive AI sector in the country, according to a report by Reuters.
Speaking at the World Government Summit on Wednesday, Alibaba Chairman Joseph Tsai stated, "Apple had discussions with various Chinese tech companies. In the end, they chose us. They will use our technology to enhance AI capabilities in their phones, which is a matter of great pride for us."
Apple’s AI strategy in China had been uncertain, with the company previously engaging in negotiations with local technology firms such as Baidu, ByteDance, and Tencent.
Globally, Apple integrates "Apple Intelligence" and OpenAI’s ChatGPT into its devices. However, in China, AI technologies require official government approval. The report indicates that both Apple and Alibaba have already submitted the necessary documentation for regulatory approval.
Following the announcement of the agreement, Alibaba’s stock price on the Hong Kong Stock Exchange surged by 9.2% to HK$124.3—the highest since January 2022. By the end of the trading day, the stock recorded a 2.6% gain.
Analysts believe Apple’s success in China will largely depend on how quickly it can roll out its new AI features.
