Alibaba Group NYSE:BABA and Baidu NASDAQ:BIDU shares advanced after both companies confirmed partnerships with Apple (AAPL) to support the rollout of Apple Intelligence features in China.
Alibaba said its Qwen artificial intelligence model will power Apple Intelligence experiences for users in China across iPhone, iPad, Mac and Vision Pro devices. The integration is intended to provide AI-powered text and image capabilities within Apple's ecosystem.
Baidu also confirmed it is working with Apple to enable Apple Intelligence features for iPhones in China. Separately, China's Cyberspace Administration included Apple Intelligence among a new group of approved smartphone-based AI services, clearing a regulatory step for broader deployment in the country.
Hong Kong-listed Alibaba shares climbed about 5%, while Baidu gained about 4% following the developments. Apple shares had risen about 4% in the prior U.S. trading session. The partnership comes as Apple reported a 24.4% year-over-year increase in China shipments during the second quarter, underscoring the importance of the Chinese market as the company expands its artificial intelligence offerings.