Apple Inc. is weighing a potential acquisition of artificial intelligence startup Perplexity AI, signalling a strategic shift as the tech giant braces for possible fallout from its multibillion-dollar partnership with Google.
According to sources familiar with the matter, internal talks about the acquisition were held between Adrian Perica, Apple’s head of mergers and acquisitions, and senior leaders, including services chief Eddy Cue. The discussions remain preliminary, with no outreach made to Perplexity’s management thus far.
A deal, if pursued, could provide Apple with a powerful in-house search capability, reducing its reliance on Google at a time when that relationship is under legal fire.
A High-Stakes Bet on the Future of Search
At the centre of Apple’s AI ambitions is a longstanding deal with Google that makes the latter’s search engine the default on Apple devices, a partnership reportedly worth about $20 billion annually. But that agreement is under threat as U.S. antitrust authorities consider whether it unfairly limits competition in the search market.
A shift away from Google would leave Apple scrambling for a replacement. That’s where Perplexity AI, known for providing real-time answers using up-to-date web data, could play a key role.
“We’ve been pretty impressed with what Perplexity has done, so we’ve started some discussions with them about what they’re doing,” Cue told jurors at the Google antitrust trial in May. He added that the tech landscape is shifting rapidly, with AI-powered tools poised to overtake traditional web search.
Apple Quietly Courts AI Powerhouses
The potential interest in Perplexity is just one part of Apple’s broader effort to close the generative AI gap with rivals like OpenAI and Meta. While Apple recently unveiled its “Apple Intelligence” initiative, its AI advancements, such as enhanced Siri capabilities and a ChatGPT-powered image generator, have largely lagged competitors.
An acquisition of Perplexity, recently valued at $14 billion, would represent the largest deal in Apple’s history. Its most significant purchase to date remains the $3 billion acquisition of Beats Electronics in 2014.
Apple’s AI recruitment drive has also put it in direct competition with Meta. Both companies are vying for top-tier talent, including Daniel Gross, the co-founder of Safe Superintelligence Inc. Apple previously acquired Gross’ startup Cue in 2013, and he played a key role in early AI features in iOS. One of his co-founders, Robby Walker, was a longtime Siri leader and now heads Apple’s “Knowledge” project, an internal initiative to rival OpenAI’s ChatGPT.
Meta, Samsung, and the Growing Perplexity Tug-of-War
Meta Platforms Inc. had also attempted to acquire Perplexity earlier this year but failed to reach an agreement. Instead, Meta invested $14.3 billion for a 49% stake in Scale AI, a company focused on building superintelligent AI systems.
Meanwhile, Samsung Electronics is reportedly nearing a deep partnership with Perplexity. The South Korean smartphone giant plans to integrate Perplexity’s AI capabilities into its own devices, potentially complicating Apple’s ambitions.
Given that Samsung is Apple’s largest competitor in the smartphone space, such a deal could be a significant roadblock if Apple seeks an exclusive relationship with Perplexity.
Perplexity addressed the mounting interest in a statement, noting, “It shouldn’t be surprising that top manufacturers want to offer the best search and more accurate AI for their users. That’s Perplexity.”
Acquisition or Alliance: Apple’s Next AI Move
Beyond acquisition, Apple is also considering a potential partnership with Perplexity. One scenario under evaluation includes integrating Perplexity’s AI engine into Safari as a search option or directly incorporating it into Siri’s back-end.
Apple’s AI teams have met multiple times with Perplexity in recent months and are actively testing its technology, a sign that the relationship is being taken seriously, even if no formal offer has been made.
For now, any major move is likely on hold until the outcome of the ongoing Google antitrust trial. Should the courts force Apple to sever or alter its search deal, the company may act quickly to secure an AI alternative.
Either way, Apple’s internal discussions underscore a clear shift: it is no longer content to trail behind in AI. With Perplexity in its sights, Apple appears ready to redefine the future of search on its own terms.
