Alibaba Group Holding Limited (NYSE:BABA) and Lenovo Group are joining forces to develop a suite of artificial intelligence (AI) products, marking a significant move as Chinese tech giants vie for dominance in the burgeoning field of generative AI.

These offerings will feature AI PCs—computers embedded with chips capable of performing generative AI operations locally—alongside other AI-driven devices and business intelligence solutions.

This collaboration was unveiled at Lenovo's Tech World event in Shanghai, highlighting the firm's "in-depth cooperation and joint innovation" with various domestic entities, including Tsinghua University's Institute for AI Industry Research, SCMP reports.

At the same event, Lenovo introduced specialized versions of its AI PC, the Yoga Book 9i, and additional AI-centric devices. These devices incorporate a personal AI assistant, Lenovo Xiaotian, powered by Alibaba's large language model, Tongyi Qianwen.

According to market research firm IDC, AI PCs are poised to dominate the Chinese market. By 2027, they are estimated to constitute 85% of new PC sales.

Recent reports indicated Microsoft Corp's (NASDAQ:MSFT) plans to unveil its innovative "AI PCs," aiming to eclipse Apple Inc's (NASDAQ:AAPL) M3-powered MacBook Air with new laptops fueled by Arm Holdings Plc (NASDAQ:ARM) technology.

These next-generation devices are powered by Qualcomm Inc's (NASDAQ:QCOM) Snapdragon X Elite processors.

The unveiling will also introduce consumer versions of the Surface Pro 10 and Surface Laptop 6, featuring Snapdragon X Elite chips.

The move aligns with the broader tech industry's push, including Advanced Micro Devices, Inc (NASDAQ:AMD) and Intel Corp (NASDAQ:INTC), to embed AI into the PC experience.

Price Action: BABA shares traded lower by 0.70% at $68.40 premarket on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.