Samsung-Perplexity reported talks could raise new Alphabet concerns, says BofA

BofA notes that numerous press reports indicate that Samsung (SSNLF) 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 (GOOGL) bargaining power with Samsung and other Android original equipment makers, the analyst tells investors. However, the firm 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 (GOOG).