Apple is reportedly engaged in internal discussions regarding a potential acquisition of artificial intelligence (AI) startup Perplexity AI. The move, if it materializes, could significantly enhance Apple’s AI capabilities and potentially pave the way for an in-house AI-powered search engine.
According to a Bloomberg News report from Friday, June 20, sources indicate that Apple’s head of mergers and acquisitions (M&A), Adrian Perica, has discussed the idea with services chief Eddy Cue and key AI decision-makers within the company. However, these talks are described as being in their preliminary stages, and there is no certainty they will lead to a formal offer.
The potential purchase is seen as a strategic step for Apple to bolster its need for advanced AI technology and expertise.
Building an AI-Powered Search Engine
A key motivation highlighted by the report is the opportunity for Apple to develop its own AI-based search engine. This becomes particularly relevant as the tech giant faces potential changes to its long-standing agreement with Google, which currently makes Google the default search provider on Apple devices. The outcome of the ongoing Google antitrust trial could impact the future of this lucrative arrangement.
The Bloomberg report suggests that any serious negotiations to acquire Perplexity would likely occur after a ruling in the Google antitrust case, once the status of the existing search deal is clearer.
Perplexity AI offers a distinct search service that provides users with real-time answers to questions by leveraging the very latest information available across the web. The startup recently reported robust growth, handling 780 million queries each month, a figure it says is increasing by over 20% month over month.
Perplexity AI, when contacted by Bloomberg, stated that it has “no knowledge of any current or future M&A discussions involving Perplexity.” PYMNTS reached out to Apple for comment but had not received a response at the time of reporting.
Apple’s AI Strategy Under Scrutiny
The potential Perplexity acquisition comes amidst broader discussions about Apple’s approach to artificial intelligence compared to its major competitors. Analysis published by PYMNTS earlier this month characterized Apple’s AI strategy as “restrained,” especially when contrasted with rivals like Amazon, Google, and Microsoft. These companies are described as “embracing large language models and enterprise-scale AI solutions in aggressive and sometimes experimental ways.”
While competitors are rapidly integrating AI agents into business software and cloud infrastructure, Apple’s current AI offerings are more focused, integrated, and narrower in scope. Examples include features like:
Real-time voicemail transcripts
Enhanced Spotlight search
Call screening
Translation capabilities
This divergence has led some observers to question whether Apple is playing a long-term strategic game or potentially falling behind the curve in the rapidly evolving AI landscape. PYMNTS’ analysis suggested that “In the context of the broader AI economy, Apple risks strategic drift.” Much of the significant innovation in enterprise AI is occurring in the cloud, powered by flexible APIs and platforms that enable advanced features like fine-tuning and multimodal inputs.
According to this view, Apple’s apparent reluctance to deeply engage in the cloud AI space leaves it more dependent on its core consumer hardware cycles and developer support. A potential acquisition of a company like Perplexity, with its expertise in real-time AI search and query processing, could be a move by Apple to acquire necessary capabilities and address some of these perceived strategic gaps in its AI portfolio relative to leading competitors.
