Alibaba, the Chinese e-commerce giant bought a minority stake in Chinese smartphone maker Meizu.
The deal is reportedly worth $590 million (£387.8m).
Alibaba already owns a custom YunOS for mobile phones.
The company’s CTO said Alibaba has plans to bring more mobile technology to the market.
"The investment in Meizu represents a significant expansion of the Alibaba Group ecosystem and an important step in our overall mobile strategy as we strive to bring users a wider array of mobile offerings and experiences," said Wang Jian, Chief Technology Officer of Alibaba Group in a press release.
Meizu is a company based in Guangdong, has some 1,000 employees and manufactures mobile phones for the Chinese market. At this point, it’s of no competition to the big Chinese three: Xiaomi, Huawei and Lenovo.
"Meizu only has about 1 percent of the China smartphone market today, and in fact has been gearing up to use YunOS since October 2014. So it's not like this changes things for Alibaba overnight, nor is it a silver bullet in terms of making YunOS instantly more widespread. One has to wonder whether other device vendors are lined up in the pipeline for YunOS," said IDC Asia analyst Bryan Ma, cNet reports (opens in new tab).
"Although, Meizu does have its own cult following of loyal fans." Ma said. "And it is one of the up-and-coming local Chinese vendors to keep an eye on, even if they are still in Xiaomi's shadow."
Alibaba will now put its YunOS operating system on Meizu’s smartphones, currently running Android OS with Meizu's Flyme OS skin.