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.

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.

Alibaba’s shares surged as the e-commerce giant made progress in its partnership with Apple to roll out artificial-intelligence features in China.