The frenzy over Chinese artificial intelligence is turning Alibaba Group Holding Ltd. into an investor favorite again, injecting new life into an e-commerce giant that had nearly sunk into obscurity following a years-long regulatory crackdown.

The partnership comes as Apple faces mounting pressure from Beijing, which requires foreign firms to collaborate with domestic companies for AI development.

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.