Apple executives are exploring the possibility of acquiring artificial intelligence startup Perplexity AI to bolster their AI talent and technology capabilities. Adrian Perica, head of mergers and acquisitions, has engaged in discussions with Chief Services Officer Eddy Cue and other key AI decision-makers regarding this potential bid, according to sources familiar with the matter. These deliberations are still in the preliminary phase, and there is no guarantee they will culminate in a formal offer, the sources, who opted to remain anonymous due to the private nature of the discussions, revealed.
Acquiring Perplexity could enable Apple to enhance its AI-based search strategies, especially against the backdrop of an uncertain future with Google, which currently generates about $20 billion annually for Apple by serving as the default search engine on its devices. However, this lucrative partnership is now under scrutiny from U.S. antitrust regulators. So far, Apple representatives have not initiated direct talks with Perplexity management. Earlier reports indicated that Meta Platforms Inc. attempted to buy the startup earlier this year, but this effort did not materialize. In a statement, Perplexity asserted that it has no knowledge of ongoing merger and acquisition discussions.
Perplexity specializes in providing real-time answers to user queries, sourcing the latest information from the web. If Apple were to pursue acquisition talks, any significant movement might come after the resolution of the Google antitrust trial, which will clarify the future of Apple’s relationship with Google. Following the news of Apple’s potential interest, Google shares dropped nearly 1% in late trading.
The valuation of Perplexity recently surged to $14 billion following an investment round, making any deal close to this figure potentially the largest acquisition in Apple’s history. To date, Apple’s most notable transaction was the $3 billion purchase of Beats in 2014. The company has also completed other multi-billion dollar deals, including Intel’s modem unit and a stake in Chinese ride-sharing company DiDi.
As competition for AI talent heats up, both Apple and Meta are vying for industry leaders. Recently, Meta engaged in advanced discussions to recruit Daniel Gross, co-founder of Safe Superintelligence AI. Meanwhile, Apple is attempting to persuade him to join their ranks. Gross previously sold his startup, Cue, to Apple in 2013, which became a foundation for early AI features in iOS.
In efforts to catch up in generative AI, Apple has been under pressure to deliver key features lacking in its offerings. The anticipated revamp of Siri has been indefinitely postponed, with plans to roll it out by spring. At the recent Worldwide Developers Conference, Apple introduced limited AI enhancements, including live translation capabilities and a collaboration with OpenAI for ChatGPT-based image generation.
Acquiring Perplexity would not only provide Apple with enhanced AI capabilities but also bolster its brand presence in the AI sector. Alternatively, discussions have taken place regarding a partnership that would see Perplexity integrated as an AI search option within Apple’s Safari browser and Siri.
Despite multiple meetings with Perplexity in recent months, potential challenges remain, notably a prospective partnership between Perplexity and Samsung Electronics, a major rival in the smartphone arena. As Perplexity stated, it’s not surprising that leading tech companies aim to provide their users with superior search and AI capabilities.
Eddy Cue has previously voiced interest in Perplexity, highlighting a significant industry shift towards AI-driven search tools during his testimony at the Google antitrust trial, where he expressed admiration for Perplexity’s innovations. As discussions progress, the future of Apple’s AI strategy remains a focal point in the tech community.
Original Source: https://www.deccanchronicle.com/technology/apple-executives-held-internal-talks-about-buying-ai-startup-perplexity-1886953
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Publish Date: 2025-06-23 11:34:00
