Reports indicate that Apple executives have engaged in internal discussions regarding a potential acquisition of the artificial intelligence startup Perplexity AI. This move comes as Apple appears to be accelerating its efforts in the rapidly evolving generative AI space.
According to a report from Bloomberg News, citing sources familiar with the matter, these internal talks have involved key Apple figures, including Adrian Perica, Apple’s head of mergers and acquisitions, Services chief Eddy Cue, and senior leadership within the company’s AI teams. While Apple representatives have reportedly met with Perplexity executives recently to discuss its underlying technology, the internal acquisition discussions themselves have not yet involved direct talks with Perplexity’s management.
Perplexity, a San Francisco-based company, operates a consumer-focused AI search engine that distinguishes itself by providing natural language answers to user queries rather than just a list of links. Its platform leverages AI models to synthesize information directly for users, offering a conversational approach to search. The startup has seen significant growth, reporting over 15 million monthly users and processing 780 million requests in May, with query volume increasing month over month. Perplexity generates revenue through paid subscriptions (Perplexity Pro and Enterprise Pro) and APIs (Sonar suite).
Why Apple Might Consider a Perplexity Acquisition
A potential acquisition of Perplexity could offer Apple several strategic advantages:
Boosting AI Capabilities: Acquiring Perplexity would inject Apple with proven AI talent, a recognized brand in the AI search market, and a functional consumer-facing AI product. This aligns with Apple’s reported push to catch up in generative AI.
Addressing Search Strategy: Perplexity’s AI search technology could potentially be integrated into Apple’s Safari browser or enhance Siri’s capabilities, offering AI-driven answers. This is particularly significant given the ongoing US government antitrust case against Google, which scrutinizes Google’s multibillion-dollar annual payments to Apple to remain the default search engine on iOS devices. Should this arrangement be challenged, Apple might seek alternative search partnerships or technologies like Perplexity’s.
- Potential Recruitment Aid: A high-profile AI acquisition could make Apple a more attractive destination for top AI talent.
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Valuation and Context
Perplexity recently completed a funding round valuing the company at $14 billion. An acquisition near this figure would represent Apple’s largest acquisition to date, significantly exceeding its previous record purchase of Beats in 2014 for $3 billion.
The report also notes that these discussions are currently in their early stages and there is no guarantee they will lead to a formal offer. Perplexity has publicly stated it has “no knowledge of any current or future M&A discussions,” while Apple has not provided an immediate response to inquiries.
This potential interest from Apple occurs within a broader landscape of major tech companies pursuing AI deals. Meta Platforms previously attempted to acquire Perplexity, but reportedly the deal fell apart over financial terms, leading Meta to invest significantly in Scale AI instead. Furthermore, there are reports that Samsung is close to finalizing a major partnership with Perplexity, which could complicate any exclusive acquisition aspirations by Apple.
Beyond a full acquisition, Apple is also exploring alternative arrangements, such as a partnership, which could be less costly and face less antitrust scrutiny.
Ultimately, while still in internal discussion phases, Apple’s reported consideration of acquiring Perplexity highlights the strategic importance of AI search technology and the intensifying competition among tech giants to secure leadership in the AI future.
