Apple Considering Acquisition of AI Startup Perplexity to Boost Tech Portfolio
Apple is reportedly in talks to acquire AI startup Perplexity, aiming to strengthen its AI capabilities and potentially build an AI-based search engine.
Apple has reportedly held in-house talks about acquiring artificial intelligence (AI) startup Perplexity AI. According to a Bloomberg News report, this acquisition could help Apple meet its growing need for AI technology and expertise. ## Apple's Strategic Move
Sources close to the matter told Bloomberg that Adrian Perica, Apple’s head of mergers and acquisitions (M&A), has discussed the idea with services chief Eddy Cue and key AI decision-makers. The talks are in their early stages and might not lead to a formal offer. ## Addressing Future Needs
An acquisition of Perplexity would allow Apple to build an AI-based search engine, especially as the company faces the possible loss of its long-term deal with Google, which makes Google the default search engine on Apple devices. ## Perplexity's Growing Influence
Perplexity’s search service offers real-time answers to questions using the latest information from the web. The company recently reported handling 780 million queries each month, with that figure increasing more than 20% month over month. ## Timing and Challenges
The Bloomberg report noted that if Apple were to engage in talks to purchase Perplexity, it would likely happen after a ruling in the Google antitrust trial. This is when Apple would learn whether its arrangement with Google will be ending. ## Official Statements
Perplexity AI stated, “We have no knowledge of any current or future M&A discussions involving Perplexity.” PYMNTS has contacted Apple for comment but has not yet received a response. ## Apple's AI Strategy
Writing about Apple’s AI efforts earlier this month, PYMNTS argued that the company’s restrained approach contrasts with that of rivals such as Amazon, Google, and Microsoft, which are embracing large language models and enterprise-scale AI solutions in aggressive and sometimes experimental ways. ## Competitive Landscape
These companies are rolling out AI agents in business software and cloud infrastructure. Apple, on the other hand, offers capabilities like real-time voicemail transcripts, enhanced Spotlight search, call screening, and translation, which are tightly integrated but narrower in scope. ## Strategic Drift Concerns
Observers might wonder if Apple is playing a longer game or simply falling behind. In the broader AI economy, Apple risks strategic drift. Most enterprise AI innovation is happening in the cloud, powered by APIs and platforms that allow fine-tuning, multimodal inputs, and integration with vast datasets. Apple’s refusal to enter this space leaves it reliant on consumer hardware cycles and developer goodwill — both of which may wane as competitors offer richer, more adaptable platforms. ## Conclusion
The potential acquisition of Perplexity AI represents a significant step for Apple to enhance its AI capabilities and stay competitive in the rapidly evolving tech landscape. Stay tuned for updates on this developing story. [Related: Future of AI in Healthcare] [Related: AI in Business Operations]
Frequently Asked Questions
Why is Apple considering acquiring Perplexity AI?
Apple is reportedly considering acquiring Perplexity AI to enhance its AI capabilities and potentially build an AI-based search engine, especially as it faces the possible loss of its deal with Google.
What does Perplexity AI offer?
Perplexity AI offers a search service that provides real-time answers to questions using the latest information from the web, handling 780 million queries each month and growing at a rate of over 20% month over month.
How would an AI-based search engine benefit Apple?
An AI-based search engine would allow Apple to reduce its dependency on Google and provide a more integrated and innovative search experience for its users.
What is the current status of the acquisition talks?
The acquisition talks are in their early stages and may not result in a formal offer. Apple and Perplexity AI have not officially commented on the talks.
What are the potential risks for Apple in the AI space?
Apple risks strategic drift in the AI space, as most enterprise AI innovation is happening in the cloud, powered by APIs and platforms that allow fine-tuning, multimodal inputs, and integration with vast datasets.