Apple Inc.'s iPhones will use Alibaba Group Holding Ltd.'s AI technology, the Chinese firm's chairman said, affirming reports the e-commerce pioneer had scored a coveted role in helping power the iPhone in the world's top mobile arena.

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.

Apple is partnering with Alibaba to roll out artificial intelligence features for iPhone users in China, the Information reported on Tuesday, citing one person with direct knowledge of the decision.

Alibaba and Apple’s partnership will lead to AI-powered features being integrated into iPhones for the Chinese market.

Alibaba has scored a prized deal as it tries to carve out a lead in the highly competitive artificial intelligence race. Apple’s iPhones in China will use Alibaba Group’s AI technology, chairman Joe Tsai said. That confirmed an earlier report that sent the Hangzhou-based company’s shares briefly soaring as much as 9.2% in Hong Kong.

Apple selected Baidu as its main partner last year, but the company's progress in developing models fell short of its standards, the report said.

Apple has announced a new iPhone which brings artificial intelligence (AI) features at a lower cost than its flagship handsets. The iPhone 16e has the same processor as the larger iPhone 16, Apple said,

CBS News MoneyWatch correspondent Kelly O'Grady breaks down Apple's newest basic iPhone that will be available later this month. The 16e has AI tools and is a lower-cost option compared to the iPhone 16.