Alibaba has scored a prized deal as it tries to carve out a lead in the highly competitive artificial intelligence race. Apple’s iPhones in China will use Alibaba Group’s AI technology, chairman Joe Tsai said. That confirmed an earlier report that sent the Hangzhou-based company’s shares briefly soaring as much as 9.2% in Hong Kong.

Apple’s introduction of AI features has been slow. The iPhone 16 launched without Apple Intelligence, which only appeared a month later. In China, strict regulations have prevented Apple from releasing any AI features. Consequently, Apple’s sales have dropped for the first time in years.

Apple has partnered with Alibaba to incorporate AI into iPhones in China, advancing its strategy in the largest smartphone market.