Apple, Alibaba
Digest more
The Trump administration and congressional officials have raised concerns about a deal to put a Chinese company’s artificial intelligence on iPhones.
Apple needs to strike a deal with Alibaba to remain competitive in China, but it could spell disaster for the company in its home country.
I downgrade Apple to a strong sell as technicals have deteriorated and the rebound appears to be a dead cat bounce.
Alibaba confirmed a partnership with Apple back in February, and the two tech giants have not yet responded to the report in a formal capacity. The deal with Apple is especially significant for Alibaba, since it looks to gain an advantage as firms such as DeepSeek and Baidu work on releasing their own AI chatbots and large language models.
Apple's AI partnership with Alibaba for Chinese iPhones faces U.S. backlash over national security and data-sharing concerns.
Alibaba stock price plunged as investors reacted to reports that the Trump administration was scrutinizing the deal with Apple.