Apple integrates Alibaba’s Qwen model into iPhone AI for China
Apple announced that its upcoming iOS 27.3 will embed Alibaba’s Qwen foundation model in Siri and other AI features for iPhone users in mainland China. The partnership was disclosed on October 31, 2026 and triggered a rally in Alibaba shares, while Baidu and PDD also posted modest gains. Alibaba’s AI Cloud revenue rose 45% YoY to $7.14 billion, but its AI Labs segment posted an adjusted EBITA loss of roughly RMB 13.9 billion in the June quarter.
Why it matters
The stock of Alibaba jumped about 5‑6% on the news, giving investors a short‑term price boost. Analysts at Citi and Morgan Stanley see the deal as a catalyst for Alibaba Cloud’s AI inference demand and have upgraded their ratings, implying further upside if the integration drives revenue growth.
Key facts
- 1Apple confirmed on October 31, 2026 that Qwen will be used in iOS 27.3 for Chinese iPhone users. 247wallst.com
- 2Alibaba shares rose 5% in morning trading after the announcement. 247wallst.com
- 3Alibaba stock surged 5.7% to $103.58. investing.com
- 4Alibaba shares jumped 6% after the news. finance.yahoo.com
- 5AI Cloud and Compute Services revenue grew 45% YoY to $7.14 billion in Q1 FY2027. 247wallst.com
- 6AI Labs and Applications segment posted an adjusted EBITA loss of RMB 13.86 billion in the most recent quarter. 247wallst.com
Open questions
- Stock rise percentages differ: 5%, 5.7%, and 6%.
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.