The partnership was first reported by tech-focused news organization The Information on Tuesday, triggering a jump in Alibaba and Apple shares.
Hong Kong-listed shares of Alibaba surged on Thursday to hit their highest level since 2022 during the intraday session before paring the gains, last up 2.5%.
The announcement could provide clarity on Apple's AI strategy in China, helping it better tackle growing competition as the iPhone's market share erodes in the world's largest smartphone market.