While Apple maintained a relatively quiet public stance on artificial intelligence during its recent Worldwide Developer Conference (WWDC), activity is reportedly bustling behind the scenes. The tech giant is actively exploring strategic moves within the AI space, with recent reports indicating significant interest in the AI-powered search startup, Perplexity AI.
According to multiple reports citing Bloomberg, Apple executives, including head of mergers and acquisitions Adrian Perica and services SVP Eddy Cue, have engaged in preliminary internal discussions and held meetings with Perplexity representatives over recent months. Though no formal acquisition offer has been made, top decision-makers at Apple are said to be considering various scenarios involving the AI company founded by Aravind Srinivas.
What is Perplexity AI and Why Apple’s Interest?
Perplexity AI positions itself as a leading AI-driven search engine and conversational assistant, offering an alternative to traditional search methods and services like ChatGPT Search. It leverages large language models (LLMs) to quickly scour the internet and provide concise, sourced answers to user queries. The platform reportedly boasts around 15 million users and is accessible across various platforms.
Apple’s reported interest stems from several key strategic motivations:
- Accelerating AI Development: Integrating Perplexity’s technology could provide a faster path to enhancing Apple’s own AI capabilities, particularly in creating a native AI search experience or significantly improving Siri. This comes at a time when Apple’s much-hyped “Apple Intelligence” update for Siri is rumored to be facing delays, possibly pushing its full rollout towards 2026.
- Enhancing Siri and Search: A partnership could see Perplexity’s tech integrated into iOS to power smarter search features, potentially even within the Safari browser, as mentioned by Eddy Cue during a previous testimony. A full acquisition could allow for deeper integration into Siri or a broader Apple-run search platform.
- Google Deal Contingency: Acquiring Perplexity could serve as a crucial strategic fallback. Apple currently has a lucrative, multi-billion dollar deal with Google to keep Google as the default search engine on iOS. Should this arrangement be challenged or ended by regulatory or court action, having its own advanced AI search capability via Perplexity would strengthen Apple’s position in the search market.
- Acquiring Top Talent: The move would also allow Apple to bring in seasoned AI talent, an area where major tech companies are fiercely competing.
Potential Scenarios: Partnership or Acquisition?
Apple is reportedly considering a few options:
Technology Partnership: Integrating Perplexity’s AI into iOS to power a native AI search experience.
Full Acquisition: Bringing Perplexity’s AI and talent entirely under the Apple umbrella for integration into Siri or a wider Apple search initiative.
The scale of a potential acquisition is noteworthy. Perplexity is reportedly valued at around $14 billion. Should Apple proceed with a deal at this valuation, it would eclipse their previous largest acquisition – the $3 billion purchase of Beats in 2014 – making it Apple’s most ambitious acquisition to date.
Competing Interests and Strategic Timing
Apple isn’t the only major player reportedly eyeing Perplexity. Meta was also said to have considered acquiring the startup earlier in the year before partnering with Scale AI. Furthermore, Samsung, which currently relies heavily on Google’s Gemini AI for its Galaxy phones, has shown significant interest in Perplexity, even offering users free access to Perplexity Pro and reportedly nearing a substantial investment deal. An acquisition by Apple would likely complicate Samsung’s plans significantly, as Apple would be unlikely to share the technology with a direct competitor.
The timing of Apple’s interest aligns with the perceived need for external expertise to accelerate its AI ambitions. While “Apple Intelligence” was announced, the lack of a concrete timeline for Siri’s revamp at WWDC fuels speculation that external partnerships or acquisitions could help Apple close the gap with rivals like Google and Meta in the fast-paced AI race.
Ultimately, exploring a deal with Perplexity AI signals Apple’s determination to bolster its position in the competitive artificial intelligence landscape, potentially securing critical AI search capabilities and talent while also preparing for future regulatory challenges to its core search business.
