In a significant development within the tech industry, February 11 saw reports emerge from multiple technology news outlets indicating a potential collaboration between Apple Inc. and Alibaba Group. This strategic partnership aims to create artificial intelligence (AI) solutions specifically tailored for users of iPhones in China. The anticipation surrounding this news led to remarkable stock performances for both companies, with shares of Alibaba and Apple experiencing a surge of over three percent at one point. By the end of the trading day on February 11, Alibaba's stock rose approximately 1.3%, while Apple's share price increased by 2.18%. Following this, Alibaba's stock on the Hong Kong exchange climbed even higher, showcasing an increase of more than 8% by February 12. Overall, since the beginning of 2025, Alibaba's stock has appreciated by over 30%, reflecting a robust investment climate for the company.
Sources close to the situation have revealed that Apple initiated testing various AI models developed by Chinese developers back in 2023. Initially, the tech giant had selected Baidu as its primary collaborator. However, progress on the Apple Intelligence model from Baidu fell short of Apple's rigorous standards, leading the company to seek alternatives. Furthermore, a burgeoning AI startup named DeepSeek was also considered by Apple during this evaluation process. Despite the potential, DeepSeek's team was deemed insufficiently equipped with the human resources and experience necessary to cater to a client of Apple’s magnitude, ultimately resulting in Apple's decision to not proceed with them. Established in July 2023 and based in Hangzhou, China, DeepSeek has around 150 employees and has been garnering attention in the AI landscape.
When approached for confirmation regarding these developments, Alibaba officials remained somewhat reticent, providing no definitive response. However, individuals close to Alibaba suggested that this collaboration fits into the company's overarching strategy to prioritize AI as a core focus. With the recent elevation of AI to a primary strategic pillar, it is likely that Alibaba has carefully considered its next moves in this domain over an extended period.
August 2023 witnessed Alibaba unveil its latest Qwen 2.5 Max model, which achieved competitive performance across various benchmark tests, including notable scores in Arena-Hard, LiveBench, LiveCodeBench, and GPQA-Diamond. This release attracted significant attention from markets and industry analysts alike, with optimistic projections being made regarding Alibaba's capabilities and future prospects in AI. According to analysts at CITIC Securities, the enhancement of model capabilities coupled with declining deployment costs is anticipated to spur rapid growth in both consumer and business demands, thereby acting as a catalyst for accelerating Alibaba Cloud's performance in the mid-to-long term.
Separately, Alibaba is also intensifying its efforts in the AI-to-Consumer business segment. On February 6, news surfaced that esteemed computer scientist Professor Steven Hoi, widely recognized as one of the leading experts in AI, had officially joined Alibaba as a vice president. Reporting to Wu Jiahui, president of Alibaba's Smart Information Business Group, Hoi will focus on foundational research and application solutions related to multimodal base models and Agents within the AI-to-Consumer vertical.
Professor Hoi's experience spans over two decades, encompassing both academic and industrial realms. He has previously held professorships at reputable institutions like Nanyang Technological University and Singapore Management University. Known for his extensive research contributions, Hoi has published over 300 influential AI papers, garnering more than 50,000 citations. His instrumental research in multimodal pre-training has significantly impacted the global development of large models, offering strategies that reduce costs and enhance efficiency, thus positioning him as a trailblazer in his field.
Inside sources at Alibaba have indicated that Professor Hoi's focus will vastly improve the end-to-end capabilities associated with Alibaba's AI applications in the consumer market, particularly by integrating models and applications effectively. Additionally, news surrounding Alibaba’s AI-to-Consumer strategy has been reinforcing its commitment to this evolving marketplace. Reports suggest that Wu Jiahui, part of Alibaba’s "young talent" cadre, is exploring business opportunities within this realm, leading to the integration of a prominent AI application known as Tongyi into Alibaba's Smart Information Business Group. This strategic move aims to hasten the collaboration between the Tmall Genie team and the Quark product development team, diving into new hardware opportunities, including the realm of AI-powered glasses.
Insiders have analyzed that the recruitment of world-class AI experts like Professor Hoi signifies Alibaba's commitment to enhance its AI-to-Consumer talent pool and resources. This strategic acquisition may pave the way for a deeper exploration of multimodal Agents and create exciting possibilities for building a user-centric AI application platform in the near future. As a side note reflecting the company’s culture, social media reports highlighted that Alibaba's charismatic founder, Jack Ma, made a noteworthy appearance at Alibaba’s Hangzhou campus on February 11. Employees shared sightings of Ma at various locations within the campus, further symbolizing the company’s deep-seated focus on innovation and leadership.
In summary, the collaboration between Apple and Alibaba marks a pivotal moment in the tech landscape, bridging Western and Eastern approaches to AI development. The ongoing shifts within these powerhouse companies could reshape the way AI technologies are integrated into consumer products, creating solutions that cater to diverse market needs and preferences. As both companies strategize their next moves in AI, the impact of their innovations and collaborations will be closely watched not only by investors but also by consumers eager to embrace the next generation of technology.