Alibaba and Baidu Shares Rise on Apple AI Partnership
Shares of Chinese tech giants Alibaba and Baidu saw gains on Thursday in Hong Kong following confirmations of a partnership with Apple to integrate their AI tools into Apple Intelligence.
Alibaba Group Holding Ltd. and Baidu Inc. experienced stock price increases on Thursday in Hong Kong after both companies confirmed partnerships with Apple. The tech giants' AI capabilities will be integrated into Apple's services within China as part of Apple's new "Apple Intelligence" features.
Alibaba's shares, listed in Hong Kong, climbed more than 5%. The company confirmed that its Qwen AI model will be incorporated into Apple's devices in China, including iOS, iPadOS, macOS, and visionOS. This integration allows users to access Qwen's functionalities, such as text and image understanding and generation, without needing to switch between applications.
Baidu's corresponding shares rose approximately 4%. The company has confirmed its collaboration with Apple on "Apple Intelligence" features for iPhone users in China. The stock surge follows an announcement on Wednesday by the Cyberspace Administration of China, which approved Apple Intelligence and six other smartphone-based AI services.
The partnerships occur amidst heightened technological competition between the U.S. and China for AI dominance. The U.S. has aimed to restrict China's access to advanced chips, while China seeks to bolster its domestic technology sector. Apple's integration with Chinese AI models could represent a significant development in this ongoing geopolitical tech race.