Apple Inc.'s iPhones will use Alibaba Group Holding Ltd.'s AI technology, the Chinese firm's chairman said, affirming reports the e-commerce pioneer had scored a coveted role in helping power the iPhone in the world's top mobile arena.

Alibaba will partner with Apple to support iPhones' AI services offering in China, its chairman said on Thursday, a move likely to help the U.S. company ease falling smartphone sales in its key market.

Apple has announced a new iPhone which brings artificial intelligence (AI) features at a lower cost than its flagship handsets. The iPhone 16e has the same processor as the larger iPhone 16, Apple said,

Alibaba Group stock was rising Thursday as China’s artificial-intelligence boom helped drive up quarterly revenue for the e-commerce company.Alibaba American depositary receipts jumped 14% to $143.30 in early trading.

Powered by AI, Alibaba delivered a double beat for Q3 earlier this morning triggering a double-digit bounce in its stock. Learn more about BABA stock here.

Alibaba Group stock continued its red-hot rally Thursday, climbing more than 10% after reporting December quarter results. Alibaba's fiscal third quarter earnings and revenue topped estimates, while the company's AI push helped accelerate growth for its cloud business.