Apple Eyeing to Buy Perplexity AI in its Largest Acquisition

Apple is poised to make a game-changing move by exploring a potential acquisition of the burgeoning AI startup Perplexity.

In a development that could mark its largest acquisition to date, Apple is planning to make a game-changing move by acquiring the burgeoning AI startup Perplexity. This intriguing report from Bloomberg’s Mark Gurman reveals that discussions are in the initial stages, with key figures such as Adrian Perica, Apple’s head of mergers and acquisitions, and services chief Eddy Cue actively involved in the talks.

While no formal offer has been tabled yet, Apple has reportedly engaged in multiple meetings with Perplexity over the last few months, closely examining the innovative technology the startup offers. 

Despite Apple’s silence on the matter, and Perplexity’s statement claiming no awareness of such discussions, the strategic rationale behind this interest is compelling. As Apple battles to maintain its position in the rapidly evolving AI landscape, particularly lacking a flagship generative AI product to rival the likes of OpenAI, Google, or Anthropic, acquiring Perplexity could be a monumental step forward. 

This acquisition would not only provide Apple with a powerful AI-driven consumer search platform but also a recognized name in the AI arena. Moreover, it would grant Apple access to a talented team of AI experts capable of accelerating its innovation agenda.

The urgency of this acquisition is heightened by the looming threat to Apple’s $20 billion annual search deal with Google, which is currently under scrutiny by the Department of Justice. As the world shifts towards AI-driven search solutions, Perplexity could be the strategic asset that positions Apple as a leader in this new era.

Additionally, reports suggest that Apple may explore a partnership with Perplexity rather than a full acquisition, potentially integrating their AI engine into Safari as a primary search alternative or enhancing Siri’s functionality. 

However, competition is fierce, with Samsung also eyeing a collaboration with Perplexity. This dynamic could either limit Apple’s strategic options or compel it to act decisively to secure its foothold in the AI landscape. 

The stakes have never been higher for Apple to act on this opportunity.