Alibaba, Apple forge AI cooperation to power mobile services

Alibaba co-founder and Chairman Joe Tsai confirmed on Thursday that Alibaba is cooperating with Apple to support the US company's mobile services, marking a fresh effort by the US tech giant to deepen its ties with China.

Speaking at the World Governments Summit 2025 in Dubai, United Arab Emirates, on Thursday, Tsai said that Apple needs a local partner in China to support its mobile services.

"They (Apple) 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, Reuters reported.

Alibaba's Hong Kong shares surged 9.1 percent, their largest single-day gain since 2022, following the company's reported collaboration with Apple to enhance iPhones with artificial intelligence (AI) features.

The US tech media outlet The Information reported that Apple's decision to go with Alibaba was partly driven by the vast troves of personal data the e-commerce giant has on users' shopping and payment habits, which could help it train models and deliver more customized services.

Apple and Alibaba have submitted the Chinese AI features they co-developed for approval by China's cyberspace regulator, the report said.

In recent years, Alibaba has made huge investments in AI, and this collaboration underscores Apple's recognition of Alibaba's AI capabilities, Ma Jihua, a veteran telecom industry observer, told the Global Times on Thursday.

"Apple has also been facing growing competition from domestic Chinese smartphone brands... To strengthen their positions in the Chinese market, companies like Apple need to collaborate with local players," Ma said, noting that this not only benefits them but also sets an example for other American firms, showing that collaboration is the right path forward.

Looking at the broader picture, Ma said that it's clear that there's significant potential for cooperation between US and Chinese companies across the technology and manufacturing industries.

Last October, Apple CEO Tim Cook also pledged to increase investment in China during his Beijing visit. Cook said Apple is keen to seize the opportunities presented by China's opening-up and will continue to increase its investment in the country, thus contributing to the high-quality development of the industrial and supply chains, the Xinhua News Agency reported.

There is no shortage of news about US companies seeking cooperation in the Chinese market. On Tuesday, auto giant Tesla held a ceremony to mark the launch of production at its Megapack energy storage plant in Shanghai's Lingang New Area, the company told the Global Times on Tuesday. The energy storage Megafactory is the first of its kind built by Tesla outside the US and the company's second plant in Shanghai.

According to a report released by the American Chamber of Commerce in China in January, nearly half of US companies in China reported profitability in 2024. China remains a key market, with nearly half of respondents ranking it as a top-three global investment priority, according to the report.