Apple sales have been struggling in China–iPhone revenue slumped 25% there in the fourth quarter–as the trade wars between the two biggest economies heated up.

Shares of Chinese e-commerce giant Alibaba surged in Hong Kong on Wednesday after The Information reported the company is working with Apple to introduce AI features to iPhone users in China.

Apple selected Baidu as its main partner last year, but the company's progress in developing models fell short of its standards, the report said.