Alibaba Group Holding and Honor are set to deepen their tie-up over an operating system for AI-powered devices, as competition in the nascent “AI phone” genre gains momentum in China. The partnership is expected to be announced at the coming World Artificial Intelligence Conference (WAIC), which kicks off on Friday in Shanghai, alongside demonstrations of new agent capabilities developed by both, according to people familiar with the matter. Shenzhen-based Honor, spun off from Huawei...