By Casey Hall SHANGHAI (Reuters) -Alibaba Chairman Joe Tsai said on Thursday the company will partner with Apple on AI for iPhones sold in the China market, sending the Hong Kong-listed shares of the Chinese tech giant soaring over 9% to a three-year high.

Apple selected Baidu as its main partner last year, but the company's progress in developing models fell short of its standards, the report said.

Apple is partnering with Alibaba to roll out artificial intelligence features for iPhone users in China, the Information reported on Tuesday, citing one person with direct knowledge of the decision.

Shares of Chinese e-commerce giant Alibaba rose in premarket trade after reports it’s partnering with Apple to roll out artificial-intelligence features for phones sold in China.

Key Takeaways Apple is reportedly partnering with Chinese firm Alibaba to develop artificial intelligence features for iPhones in China.Apple Intelligence is a key selling point of iPhone 16, but the service has been unavailable in China since its October launch.

The rumored collaboration between Apple and Alibaba to get Apple Intelligence in China has now been confirmed, sending Alibaba shares rising to a new high.

Alibaba Group’s stock surged up to 8.6% following reports about Apple linking up with the e-commerce giant to roll out AI features for iPhone users in China. For Alibaba, securing a deal with Apple is no less than a breakthrough.

Apple is partnering with Alibaba Group to introduce artificial intelligence features in China, strengthening its position in a crucial market where it has struggled to establish a strong AI presence.