Xiao-I Corp. (AIXI) shares took a hit Wednesday, dropping more than 13% after the company disclosed a setback in its long-running patent fight with Apple (AAPL) over Siri. The Shanghai-based AI company said it plans to appeal a pair of unfavorable rulings from a Chinese court.

On Friday, Xiao-I announced it would appeal to China's Supreme People's Court after the Shanghai High People's Court issued judgments on June 10 in two related cases. In the first case, the court dismissed Xiao-I's claims that Apple's Siri infringed its invention patent, titled "A Chat Robot System" (Patent No. 200410053749.9). In the second, the court ruled that specified iPhone models equipped with Siri don't fall within the protection scope of that patent.

There was one small win for Xiao-I: the court rejected Apple's request for 2 million Chinese yuan in compensation for litigation-related expenses, including attorney fees, translation fees, and notarization fees. So Apple didn't get paid, but Xiao-I didn't get what it wanted either.

This isn't the end of the story, though. The latest rulings come after a March 31, 2026, decision by China's Supreme People's Court, which upheld the validity of Xiao-I's patent and rejected Apple's attempt to have it invalidated. That ruling addressed only whether the patent was valid—not whether Siri actually infringes it. The current proceedings were supposed to answer that question, and so far, the answer hasn't gone Xiao-I's way.

Xiao-I said it's disappointed with the first-instance judgments and disagrees with the courts' factual and legal findings. The company believes there are substantial grounds for appeal and plans to formally file appeals with the Supreme People's Court within the statutory deadline. It said it will continue to pursue its intellectual property rights through the legal process.

But the company also cautioned investors that there's no guarantee it will get a different result or any financial compensation. It promised to provide updates on material developments as the case progresses.

As of Wednesday's publication, Xiao-I shares were trading at $2.62, down 13.25% on the day. The stock has been volatile as the legal saga unfolds, and today's drop suggests the market isn't betting on a quick reversal.