Alibaba Group’s Stock Surged After Partnership Reports

Alibaba Group’s stock climbed 8.6% after reports of its partnership with Apple to integrate AI features for iPhone users in China.

This collaboration marks a significant milestone for Alibaba, as its AI model, Qwen 2.5-Max, has reportedly outperformed both Llama-3.1-405B and GPT-4o.

In 2025, Alibaba’s stock has surged over 30%, reaching $112.78 at time of writing. https://finance.yahoo.com/quote/BABA/

With iPhone users known for higher spending, Alibaba stands to benefit by charging premium fees and accelerating its cloud revenue growth, projected to rise 11% annually in fiscal 2026.

Apple Chose Alibaba

Apple’s AI strategy in China had been unclear for months, leading to a loss of market share to competitors like Huawei, whose smartphones featured advanced AI tools.

The absence of such features contributed to a decline in iPhone sales during the last holiday quarter.

To regain its footing, Apple partnered with Alibaba, leveraging the e-commerce giant’s vast user data—from shopping habits to payment patterns—to enhance and customise its AI offerings.

This data is expected to refine Apple’s AI models, delivering more tailored tools to Chinese consumers.

The co-developed AI features have been submitted for approval to China’s cyberspace regulator, according to reports.