Alibaba will partner with Apple to support AI features on iPhones in China, sending Alibaba's shares surging over 9% to a three-year high. Reuters reports: "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 honored to do business with a great company like Apple," Tsai said at the World Government Summit in Dubai. Apple continues to work with Baidu on AI features for iPhones in China, The Information reported on Thursday, citing two people with direct knowledge of the matter.

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 The Information reported earlier that both Alibaba and Apple have already submitted materials to authorities. "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.

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