• 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.

• Greater China was the only region where Apple’s first-quarter sales declined year-over-year.

Alibaba Group (BABA) Chairman Joe Tsai reportedly said that the Chinese tech giant is partnering with Apple (AAPL) to add its artificial intelligence features in iPhones in China.

CNBC cited Tsai speaking at the World Governments Summit in Dubai and reportedly said the U.S. phone maker settled on Alibaba as a partner after conversations with several Chinese companies. Tsai said, according to the news outlet, that Apple wants Alibaba to “power” its phones and that the Chinese tech firm could help the U.S. company to “navigate the regulatory environment and localize its AI.”

Neither Alibaba nor Apple returned requests for comment.

The Information on Tuesday and The Wall Street Journal early Wednesday reported that Apple had submitted AI features developed with Alibaba to Chinese regulators for approval, a process that could take several months. Apple’s China iPhones aren’t equipped with its recently launched AI features, called Apple Intelligence.

Alibaba shares are down 1.8% in intraday trading Thursday, while Apple shares are little changed.

A successful partnership between the two could help Apple with sales in China, a key market where it has been losing market share to domestic rivals. Greater China was the only region where Apple’s first-quarter sales declined year-over-year, and iPhone sales in the country missed analysts’ expectations.

UPDATE—Feb. 13, 2025: This article has been updated to include refreshed share prices.

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