Story
Alibaba, Baidu Shares Climb After Apple Secures AI Approval in China
Summary
Hong Kong-listed shares of Alibaba and Baidu rallied after Apple received regulatory clearance to launch its Apple Intelligence services in China, which will be powered by the two local tech giants.
Shares of Alibaba Group (HK:9988) and Baidu (HK:9888) jumped in Thursday trading after Apple Inc. (NASDAQ:AAPL) secured crucial regulatory approval to introduce its Apple Intelligence features in China, leveraging technology from the local firms.
Market Reaction
In Hong Kong, the news prompted a significant rally for the Chinese technology partners. Key stock movements included:
- Alibaba shares advancing nearly 5%.
- Baidu shares climbing 4%.
The gains followed a report that China's cyberspace regulator had approved Apple's on-device generative AI services for use on its products within the country.
AdPartnership Details and Implications
According to a Reuters report citing a source familiar with the matter, Apple's AI services in China will integrate capabilities from both Alibaba's Qwen large language model (LLM) and Baidu's AI technologies. Alibaba later confirmed to Reuters that its Qwen model will help power Apple Intelligence experiences across iOS, iPadOS, macOS, and visionOS for Chinese users.
This regulatory clearance is a significant step for Apple. All generative AI services must receive government approval before they can be offered to the public in China. The move allows Apple to close a competitive gap with domestic rivals like Huawei and Xiaomi, which had already integrated AI features into their devices, potentially strengthening Apple's position in the critical Chinese market.
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