KEY TAKEAWAYS Alibaba Group Chairman Joe Tsai reportedly said that the Chinese tech giant is partnering with Apple to add its artificial intelligence features for its iPhones in China. CNBC cited Tsai as saying that Alibaba could provide Apple with a local partner to navigate China's regulatory environment.

Alibaba has scored a prized deal as it tries to carve out a lead in the highly competitive artificial intelligence race. Apple’s iPhones in China will use Alibaba Group’s AI technology, chairman Joe Tsai said. That confirmed an earlier report that sent the Hangzhou-based company’s shares briefly soaring as much as 9.2% in Hong Kong.

Apple and its rivals in the Chinese smartphone market are in a heated race to adopt the country's fast-improving artificial intelligence (AI) models, including those from DeepSeek and Alibaba Group Holding.