Catch up on the top artificial intelligence news and commentary by Wall Street analysts on publicly traded companies in the space with this daily recap compiled by The Fly:
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GOOGLE SEARCH ALTERNATIVE: In addition to Samsung’s (SSNLF) potential investment in Perplexity, Apple (AAPL) is also interested in cooperating with Perplexity, planning to use technology from the AI startup as an alternative to Google (GOOGL) search on the iPhone and to replace the option of integrating ChatGPT in Siri, Bloomberg’s Mark Gurman reports. “We’ve been pretty impressed with what Perplexity has done, so we’ve started some discussions with them about what they’re doing,” Eddy Cue, Apple’s senior vice president of services, said during recent testimony at a Google antitrust trial.
BofA notes that numerous press reports indicate that Samsung is in discussions on a possible partnership with Perplexity AI, including potentially becoming one of its largest investors by investing about $500M and valuing the startup at around $14B. The reported partnership discussions underscore the growing options available to device manufacturers enabled by AI technology and new options could reduce Google’s bargaining power with Samsung and other Android original equipment makers, the firm tells investors. However, BofA also notes that Samsung Internet browser share is only 2.12% per Statcounter, versus Chrome at about 66%, possibly limiting perceived search revenue impact for Google or stock reaction to the news. The firm, which views Google’s Android Strategy as “both a carrot and stick for its Android OEM partners,” keeps a Buy rating and $200 price target on shares of Google parent Alphabet.
LICENSE TECHNOLOGY: IBM (IBM) announced watsonx AI Labs, a new, developer-first innovation hub in New York City, designed to supercharge AI builders and accelerate AI adoption at scale. Also, IBM announced it will acquire expertise and license technology from Seek AI, the New York City-based startup building AI agents to harness enterprise data. watsonx AI Labs will focus on co-creation of domain-specific AI solutions to solve enterprises’ most complex challenges – from customer service and supply-chain optimization to cybersecurity, responsible AI governance, and open-source AI.
AI DEMAND STILL ROBUST: TSMC (TSM) said the U.S. tariffs were having some impact on the company, but the demand for AI continues to remain strong and outpaces supply, Wen-Yee Lee of Reuters reports. At TSMC’s annual shareholders meeting, CEO C.C. Wei said, “Tariffs do have some impact on TSMC, but not directly. That’s because tariffs are imposed on importers, not exporters. TSMC is an exporter. However, tariffs can lead to slightly higher prices, and when prices go up, demand may go down.”
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