XIAO-I Corporation (AIXI) research, news, and more from GeoInvesting

Company description

Fri, 23 Aug 2024 19:01:16 GMT

XIAO-I Corp is a global AI industrialization company focusing on AI Cognitive Intelligence platform. The platform combines six core technologies including Natural Language Processing, Speech Processing, Computer Vision, Machine Learning, Affective Computing, Data Intelligence and Hyper- automation. Based on the platform, The companyÂdeveloped products and solutions in fields of Al+ Contact Center, Al+ Finance, Al+ City Public Service, Al+ Architecture, Al+ Metaverse, Al+ Manufacturing, and Al+ Healthcare. It generates revenue from the sale of software products and service, M&S service, and sale of cloud platform products.

Research

Tue, 31 Mar 2026 16:39:50 GMT

Xiao-I Corporation (NASDAQ:AIXI) ($0.10; $1.3M market cap) announced update on $1.4 billion patent infringement lawsuit against Apple following final court ruling affirming patent validity:

Supreme People's Court rejected Apple's appeal and upheld validity of Xiao-I's core AI patents in final, binding ruling.
Apple previously sought to invalidate patents forming basis of infringement claims through appeals process.
Patent validity ruling concludes appellate review with no further right of appeal for either party.

Our Quick Take:

AIXI has been a confusing journey. It had appeared that the patent invalidation argument had already been settled upon, in favor of AIXI.

It wasn’t apparent that Apple Inc. (NASDAQ:AAPL) could still appeal earlier decisions in AIXI’s favor. Regardless, it’s good to see that the patent invalidation is now out of the way.

The infringement case itself is being handled by the Shanghai High People's Court, and whatever it decides could potentially be appealed to the Supreme People's Court by either side.

Unfortunately, we presume there may still be another round of appeals ahead on the actual infringement question.

As of its latest report, AIXI had a cash balance of around $5M and was generating significant losses. They will probably have to dilute to fund the lawsuit because their core operations are burning cash.

Xiao-I Corporation provides conversational AI, voice, automation, and data intelligence software platforms for enterprises and public-sector organizations to power customer service and business process automation.

Research

Tue, 26 Nov 2024 15:25:34 GMT

Special Situation: XIAO-I Corporation (NASDAQ:AIXI) $1.4 Billion Lawsuit VS. Apple Inc. (NASDAQ:AAPL)

In our October RFT update (more complete look into our original August RFT) we summarized some of the important timeline facts regarding AIXI’s $1.4 billion patent infringement suit against AAPL. One of these facts was regarding stall statistics AAPL used suing the patent office and AIXI:

“On March 27, 2023 Apple had the “cajones” to sue the patent office (essentially. a Chinese Government agency), which I believe accused it of improperly handling the reversal of the invalidation patent decision (patent administrative lawsuit). AIXI was also named in this lawsuit.”

“The update also disclosed that on June 28, 2024, the Beijing Intellectual Property Court ruled against Apple in its March 27 lawsuit against the patent office.”

We now found a circular that shows APPL is still running scared, appealing the above quoted Beijing Court decision to the “Supreme People’s Court.”

“Announcement of the Hearing Date of the Intellectual Property Tribunal of the Supreme People's Court on November 8, 2024

Release time: 2024-11-06 14:21:26 Source: Intellectual Property Court of the Supreme People's Court

The Intellectual Property Tribunal of the Supreme People's Court is scheduled to hold a public hearing in the Fifth Court of the Supreme People's Court at 13:30 pm on November 8, 2024 to hear the administrative dispute over the invalidity of the invention patent right between the appellant Apple Computer Trading (Shanghai) Co., Ltd. and the respondent National Intellectual Property Administration and the third party in the original trial, Shanghai Zhizhen Intelligent Network Technology Co., Ltd. This is hereby announced.”

We believe this is the last appeal AAPL can make leading up to a final decision on the $1.4 billion suit. However, we are still researching the appeal process in China that could occur if AIXI actually ends up being victorious in actually being awarded a final victory and $1.4 billion. For example, could both decisions be separately appealed?

All 1.4 billion of my fingers and toes crossed!!!

XIAO -I Corp is a global AI industrialization company focusing on AI Cognitive Intelligence platform.

Research

Mon, 07 Oct 2024 14:27:31 GMT

Brief Message on AIXI and the Speculative or Special Situations Stocks We Cover

We’ve been getting a lot of questions about our coverage on Xiao-I Corporation (NASDAQ:AIXI), which officially began here, as a PodClip summarizing the company’s ongoing legal dispute with Apple Inc. (NASDAQ:AAPL).

To give some clarity on our coverage timeline, our initial written coverage was designated as a Reasons For Tracking research piece.

We also discussed the pitch on a September 16, 2024 X Spaces event, where Maj explained his bullishness on the set-up, even though it’s a very risky special situation play.

And, last week, we updated the original RFT for current information.

For transparency purposes, we are adding to our Select Coverage Universe Model Portfolio, as of the X Spaces event.

We used to have a Special Situations Model Portfolio to designate speculative plays, but that was discontinued due to the inactivity in the portfolio and the much heavier weight we put on microcap stocks with good fundamentals or are high probability turnaround candidates.

So please just be aware, even though we are adding it to the Select Coverage Universe Model Portfolio, it’s still a very risky play.

As a reminder for those that are new to our service, when you are visiting any Model Portfolios or Screens, you can click on any company symbol within the list, which will take you to its profile page where you can read the entire chronology of our coverage.

Research

Fri, 04 Oct 2024 12:20:56 GMT

Update and extended version of our original note from 8/26/2024

Special Situation: XIAO-I Corporation (NASDAQ:AIXI) $1.4 Billion Lawsuit VS. Apple Inc. (NASDAQ:AAPL)

Just when I thought I would swear off investing in any U.S. listed China based stocks, along comes XIAO-I Corporation (NASDAQ:AIXI).

AIXI is a Chinese software company focused on AI technology, particularly a conversational AI platform. It primarily develops natural language processing (NLP) solutions. The company’s AI-powered systems are designed to enhance human-computer interaction across various industries, including customer service, finance, and healthcare. Its key products include intelligent chatbot services, virtual assistants, and smart customer support tools, which aim to help businesses automate processes and improve efficiency.

AIXI claims that major telecom firms and most of the major banks in China use AIXI’s technology.

“Our customers include 80% of the top 10 banks in China in terms of asset size, as well as 60% of the top 10 insurance companies in China. Our customers also include many leading enterprises in aviation, automobile, logistics, computer, communication, consumer and other industries and China’s top 500 enterprises.”

The company reported 2023 revenue of about $59 million and has guided for 2024 revenue of $75 million, although it only has a cash balance of $1.5 million, $45 million in debt, is losing money and recently filed a shelf.

All this being said, I have no opinion on the validity of the company’s business or on its future potential, nor do I care.

$1.4 Billion Reasons To Place A Bet

NOTE: All share based calculations are using the ADR share count and take into account a recent 9 for 1 reverse split.

AIXI is currently embroiled in a decade-long patent lawsuit against $AAPL, claiming AAPL illegally used their intellectual property in Apple's Siri service. AIXI is suing Apple for $1.4 billion, an amount more than adequate to pay off its debt load of about $45 million. At the current price of around $5.50, the fully diluted market cap of AIXI is currently around $46 million (fully diluted basis taking into account some minimal convertible debt).

To put this in an AIXA cash per share perspective, that equates to $165 (fully diluted basis taking into account some minimal convertible debt).

AIXI also has some voting, non-convertible preferred stock outstanding held by the founder, who owns 21% of the common stock. This is basically a poison pill with no other rights. However, if you wanted to work the preferred into the cash per share calculation (which I do not think you should), the $1.4 billion potential win would be $42.

year battle in the courts on that issue.

In July 2020, AAPL lost this battle with the courts (reversing an earlier decision that ruled in favor of Apple). This was a critical win for AIXI, allowing it to immediately pursue its original patent infringement claim against Apple from June 2012.

On March 27, 2023 Apple had the “cajones” to sue the patent office (essentially. a Chinese Government agency), which I believe accused it of improperly handling the reversal of the invalidation patent decision (patent administrative lawsuit). AIXI was also named in this lawsuit.

Well, four years later from the validation of a patent win, AIXI issued an update on August 27, 2024 discussing developments and where the lawsuit was in terms of timeline, disclosing that:

“The trial phase of the Lawsuit was concluded on July 31, 2024, and the parties to the Lawsuit are currently awaiting the Court's final ruling.”

The update also disclosed that on June 28, 2024, the Beijing Intellectual Property Court ruled against Apple in its March 27 lawsuit against the patent office

Then, on September 30, AIXI issued an update, stating that as of September 30,2024:

“On September 24, 2024, the Shanghai High People's Court (the "Court") held a hearing on the case, both VIE's and Apple's legal teams were in attendance for the hearing, which marks the latest step in this dispute.”

In the U.S., it’s not uncommon for parties to set mediation dates to settle a case before going to trial. Since this hearing occurred after the trial was over, I am not sure how it works in China, but China does allow for a mediation process in IP civil cases and is trying to encourage mediation. Regardless, I am taking this hearing to signal that something is coming, whether it’s a settlement or the court’s decision on the case.

Proceed With Caution

The patent in dispute being validated and Apple losing its suit against the IP, in my opinion, bode well for AIXI to win this battle. I also take the latest hearing to be a positive step, where the courts, from a political point of view, would probably prefer to avoid making a decision in this case.

Still, a degree of uncertainty as to when the courts will rule on the case and if Apple can still appeal an unfavorable verdict and/or the damages are variables that make this a very speculative play. To be clear, it has been four years since AIXI resumed its infringement claim against Apple in August 2020. Also, who knows what a settlement would look like?

Furthermore, in the event of a victory, it will be critical for AIXI to share its bounty with shareholders as opposed to using some BS “we can’t pay dividends from China” excuse.

I want to stress that I currently do not plan on holding this stock for an extended period of time, upon an AIXI victory or loss.

Here’s a good article talking about the lawsuit, in case you want to dig a little further into the technical details

Research

Mon, 26 Aug 2024 17:18:53 GMT

XIAO-I Corporation (NASDAQ:AIXI) ($4.31; $34.9M market cap)

Please, Not Another China Stock With At Least 10x Potential!

Just when I thought I would swear off investing in any U.S. listed China based stock (due to the years-long $SEED journey), along comes $AIXI. Before you say anything, DON’T SHOOT THE MESSENGER.

AIXI is a Chinese software company with a focus on AI technology, particularly a conversational AI platform. The company has licensed its technology to major telecom firms in China, and sports annual revenue of about $59 million , although it only has a cash balance of $1.5 million , is losing money and recently filed a shelf .

AIXI is currently embroiled in a decade-long patent lawsuit against $AAPL, claiming AAPL illegally used their intellectual property in Apple's Siri. AIXI is suing Apple for $1.4 billion .

To put this in an AIXA cash per share perspective, that equates to about $177 per share and more than enough to pay off its debt load of about $45 million .

The lawsuit has seen many legal twists, including Apple's attempt to invalidate the patent. This was a very clever move by Apple. It paused the ability of AIXI to sue Apple on the patent infringement claim for what turned out to be an eight year battle in the courts on that issue. In July 2020, AAPL lost its battle with the courts to invalidate the disputed patent. This was a critical win for AIXI, allowing them to immediately pursue their original patent infringement claim against Apple.

Although this lawsuit, with a potential $1.4 billion award , has surely caught our attention, a degree of uncertainty as to when the courts will rule on AIXI claims, and the amount of an award, are variables that make this a very speculative play. To be clear, it’s been four years since AIX resumed its infringement claim against Apple in August 2020.

We have reached out to the company with several questions to help us bring clarity on where the lawsuit stands, in terms of timeline. Hopefully, they will get back to us.

Most of us probably already know about the fraudulent history in US-listed Chinese stocks, but if you are new to this concept, go here to learn a little about that .

I’ve recorded a PodClip for you that explores these complexities and expresses caution for those considering this highly speculative investment Listen to it below:

Maj

Reasons For Tracking

Mon, 26 Aug 2024 04:00:00 GMT

XIAO-I Corporation (NASDAQ:AIXI) ($4.31; $34.9M market cap)

Please, Not Another China Stock With At Least 10x Potential!

AIXI is a Chinese software company with a focus on AI technology, particularly a conversational AI platform. The company has licensed its technology to major telecom firms in China, and sports annual revenue of about $59 million, although it only has a cash balance of $1.5 million, is losing money and recently filed a shelf.

AIXI is currently embroiled in a decade-long patent lawsuit against $AAPL, claiming AAPL illegally used their intellectual property in Apple's Siri. AIXI is suing Apple for $1.4 billion.

To put this in an AIXA cash per share perspective, that equates to about $177 per share and more than enough to pay off its debt load of about $45 million.

Although this lawsuit, with a potential $1.4 billion award, has surely caught our attention, a degree of uncertainty as to when the courts will rule on AIXI claims, and the amount of an award, are variables that make this a very speculative play. To be clear, it’s been four years since AIX resumed its infringement claim against Apple in August 2020.

We have reached out to the company with several questions to help us bring clarity on where the lawsuit stands, in terms of timeline. Hopefully, they will get back to us.

Most of us probably already know about the fraudulent history in US-listed Chinese stocks, but if you are new to this concept, go here to learn a little about that.

I’ve recorded a PodClip for you that explores these complexities and expresses caution for those considering this highly speculative investment Listen to it below:

Maj

PodClips

Fri, 23 Aug 2024 19:02:01 GMT

AIXI, also known as Xiao-I Corporation, is a Chinese software company with a focus on AI technology, particularly voice recognition. The company has licensed its technology to major telecom firms in China. AIXI is currently embroiled in a decade-long patent lawsuit against Apple, concerning the use of their intellectual property in Apple's Siri. The lawsuit has seen many legal twists, including Apple's attempt to invalidate the patent. Recently, AIXI won a critical legal battle, allowing them to pursue their original claim against Apple. This lawsuit, with a potential $1.4 billion award, has caught the attention of speculative investors. However, the stock's recent one-for-nine reverse split and the history of volatility in US-listed Chinese stocks add layers of risk to this investment. This PodClip explores these complexities and expresses caution for those considering this highly speculative play.