Apple (AAPL) is teaming up with Alibaba (BABA) to develop artificial intelligence features for iPhone users in China, BofA analyst Wamsi Mohan tells investors, citing a report from The Information. The firm, which has a Buy rating and $265 price target on Apple shares, notes that Apple’s smartphone share has been pressured in China, and while it was announced last year that Apple was partnering with Baidu (BIDU) for AI in China, Apple ended the project because Baidu’s models developed for Apple Intelligence were not up to Apple’s standards. Tuesday’s news shows Apple’s desire to swiftly launch AI features in China, BofA says.

Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>