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Apple links up with Alibaba to develop AI features for Chinese users, Alibaba stock surges
- Alibaba Group’s stock surged over 8% following news of its partnership with Apple.
- Apple has linked up with the e-commerce giant to roll out its AI features for users in China.
- Alibaba has access to a huge amount of user data, which Apple can leverage to deliver customized AI tools.
Alibaba Group’s stock surged up to 8.6% following reports about Apple linking up with the e-commerce giant to roll out AI features for iPhone users in China.
For Alibaba, securing a deal with Apple is no less than a breakthrough. Alibaba’s latest AI model Qwen 2.5-Max has reportedly outperformed Llama-3.1-405B and GPT-4o, and in 2025 alone, its stock has gone up by over 30%, reaching a price of $111.90 at press time.
The Information mentioned that Apple’s iPhone users typically spend more money, so if Alibaba can cater to them, it could charge higher fees and potentially grow its cloud revenues faster (11% yearly gains in fiscal 2026).
For months, Apple’s AI strategy for China remained uncertain. As a result of which, Apple lost market share to rivals like Huawei that offered smartphones with AI tools. Last holiday quarter, iPhone sales dipped in China due to its lack of AI features.
According to The Information, Apple has chosen to partner up with Alibaba because the e-commerce giant has a huge amount of user data including shopping and payment habits. Apple could use this data to train its AI models and deliver customized tools.
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Noor Bazmi
Noor Bazmi contributes to Cryptopolitan news team equipped with a Media Studies degree. Noor covers news on blockchain, cryptocurrency, artificial intelligence, Big Tech, EV markets, global economics, and government policy shifts. She is taking studies in marketing to connect with global audiences.
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