Shares in Alphabet (GOOGL) edged higher today despite technology giant Samsung Electronics looking to give its customers more AI variety in its future mobile phones.
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AI Diversity
According to a report in Bloomberg, South Korea’s Samsung is seeking other options outside of Alphabet’s AI Assistant Gemini for its Galaxy devices.
In an interview with Choi Won-Joon, president and chief operating officer of Samsung’s mobile division, it was reported that it is already in talks with Microsoft (MSFT)-backed OpenAI and Perplexity AI, which is backed by chip giant Nvidia (NVDA), SoftBank (SFTBY), and Amazon (AMZN) founder Jeff Bezos.
The main driver, according to Choi, is to give its customers more choice on its upcoming Samsung Galaxy S26 smartphone line next year.
Samsung’s current line-up features Alphabet’s AI model, like much of the rest of the field of Android devices.
“We are talking to multiple vendors. As long as these AI agents are competitive and can provide the best user experiences, we are open to any AI agent out there,” Choi said.
As can be seen below, innovation, including those of rivals, is one of the key risks to Alphabet stock and its investors.
Allay Doubts
It is also understood that Samsung is nearing a deal to invest in Perplexity and integrate its app and assistant.
Like rival Apple (AAPL), the Galaxy phone maker is looking to augment its own efforts at artificial intelligence with the best available from outside providers.
Beyond AI, the mobiles-to-chips conglomerate is also reportedly evaluating new application processors for the Galaxy S26 and considering both Qualcomm (QCOM) Inc. products and its in-house Exynos 2600.
For the recently released Galaxy Z Flip 7, Samsung used the Exynos chipset in a foldable for the first time. According to reports, the company has sought to reduce reliance on Qualcomm and allay doubts about the efficiency and thermal performance of its Exynos line.
Is GOOGL a Good Stock to Buy Now?
On TipRanks, GOOGL has a Strong Buy consensus based on 28 Buy and 9 Hold ratings. Its highest price target is $250. GOOGL stock’s consensus price target is $214.56 implying an 11.65% upside.
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