Apple and its rivals in the Chinese smartphone market are in a heated race to adopt the country's fast-improving artificial intelligence (AI) models, including those from DeepSeek and Alibaba Group Holding.

Apple will work with Chinese tech giant Alibaba to roll out AI services in the world’s biggest market for mobile phones, in a move that removes months of uncertainty for the Cupertino-based firm.

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.