Apple Eyes Perplexity AI Acquisition Amidst AI Push
Apple executives are reportedly holding internal discussions regarding the possibility of making a significant bid to acquire Perplexity AI, a leading startup known for its innovative AI-powered web search engine.
These early-stage deliberations, first reported by Bloomberg’s Mark Gurman, involve key figures within Apple, including mergers and acquisitions chief Adrian Perica, services head Eddy Cue, and other leaders overseeing the company’s artificial intelligence strategy. Sources indicate that these talks are preliminary and may not ultimately result in a formal offer.
Neither Apple nor Perplexity have confirmed the report publicly. Apple declined to comment, while Perplexity stated it has “no knowledge of any current or future M&A discussions involving Perplexity,” according to Reuters queries. This aligns with Apple’s well-known culture of extreme secrecy, particularly around unreleased products and strategic moves, which serves to protect innovations, manage market anticipation, and maintain internal control.
Why Perplexity? Why Now?
Apple’s reported interest in Perplexity comes as major tech companies are aggressively investing in AI capabilities to stay competitive. Perplexity distinguishes itself with AI search tools, backed by investors including Nvidia, that provide users with summarized information, positioning it as an alternative to traditional search engines like Google and conversational AI like OpenAI’s ChatGPT and Google’s Gemini.
A significant motivation behind Apple exploring a Perplexity acquisition or partnership is the potential to integrate advanced AI-driven search features into core Apple services like Safari and Siri. This could represent a strategic pivot, potentially reducing Apple’s reliance on its long-standing and lucrative deal with Google, which makes Google the default search engine across Apple devices and reportedly brings Apple around $20 billion annually.
The timing is particularly noteworthy given the ongoing U.S. Department of Justice antitrust trial against Google. A ruling against Google could potentially nullify or alter existing default search agreements, creating an increased need for Apple to secure alternative or enhanced search technology.
A Multi-Billion Dollar Deal on the Table
Perplexity’s rising profile is reflected in its recent valuation. Following its latest funding round, the company was valued at $14 billion. An outright acquisition by Apple at a figure near this valuation would dwarf Apple’s largest previous acquisition, the $3 billion purchase of Beats over a decade ago, making it the biggest deal in Cupertino’s history.
While an acquisition is being discussed internally, Apple is also reportedly considering a partnership as an alternative. The two companies have met multiple times in recent months to explore ways to integrate Perplexity’s technology.
However, any potential deal could face complications. Perplexity is also reportedly nearing a separate, far-reaching agreement with Samsung, Apple’s primary rival in the smartphone market, to bring its AI features to Samsung devices. Such a move could complicate or potentially hinder negotiations with Apple.
The news of Apple’s interest also underscores the intense competition in the AI space; Meta Platforms reportedly attempted to acquire Perplexity earlier this year and has made other significant AI investments, highlighting the aggressive race among tech giants to build and integrate advanced AI.
Ultimately, while Apple’s internal discussions about Perplexity AI are at an early stage, they signal a clear strategic focus on bolstering the company’s AI capabilities, potentially reshaping its approach to search, and navigating the complex regulatory and competitive landscape of artificial intelligence.
