Alibaba will partner with Apple to support iPhones' AI services offering in China, its chairman said on Thursday, a move likely to help the U.S. company ease falling smartphone sales in its key market.

Apple's deal to put Alibaba Group Holding's artificial intelligence (AI) models on the iPhone has Chinese developers buzzing about the potential of the partnership ahead of the US tech giant's conference in Shanghai next month.

Alibaba's stock surged 46% in 2025, driven by AI investments, cloud expansion, and investor optimism despite lingering regulatory concerns.