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.

In a significant development for technology enthusiasts, Alibaba Group Chairman Joe Tsai announced at the World Governments Summit in Dubai that the company will collaborate with Apple to implement artificial intelligence (AI) for iPhones sold in China.

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.