Alibaba's stock surged by 8.6% following reports of a collaboration with Apple to develop AI features for iPhone users in China.
Alibaba's Stock Surge
Alibaba's stock displayed significant growth following news of an agreement with Apple. Alibaba's new AI model Qwen 2.5-Max has outperformed Llama-3.1-405B and GPT-4o. In 2025 alone, the company's stock price increased by over 30% to reach $111.90.
Apple's Strategy in China
For months, Apple's AI strategy for China remained uncertain, resulting in a loss of market share to rivals such as Huawei. Last holiday quarter, iPhone sales in China dipped due to the lack of AI features.
Potential of the Partnership
Apple's choice to partner with Alibaba is motivated by the latter's vast user data, which includes shopping and payment habits. Apple could use this data to train its AI models and deliver personalized tools.
The collaboration between Alibaba and Apple presents new opportunities for both companies, with AI feature integration potentially increasing Apple's market share in China.
