According to a Bloomberg report from Mark Gurman, Apple executives are considering acquiring Perplexity AI, aiming to bolster their talent pool and potentially develop an AI-powered search engine. Adrian Perica, Apple’s head of mergers and acquisitions, has reportedly engaged in discussions about this possibility with Eddy Cue, SVP of services, and other key figures in Apple’s AI initiatives. These discussions are in their early stages, and Apple has not yet made a formal offer to Perplexity.
An alternative under consideration is a partnership with Perplexity, rather than an outright acquisition. In either scenario, the goal is to create an AI search engine utilizing Perplexity’s technology and integrate it into Siri. Bloomberg indicates that Apple has held multiple meetings with Perplexity in recent months, even though no formal offer has been extended.
In May, Eddy Cue, during testimony for Google’s antitrust case regarding its search engine default on iPhones, mentioned discussions about integrating Perplexity with Safari. This ongoing arrangement provides Apple with billions of dollars annually, reaching $18 billion in 2021. However, Cue did not disclose any definitive plans, including a potential acquisition.
An acquisition of Perplexity could provide Apple with a smoother path to developing an AI-based search engine, particularly if regulators mandate an end to its partnership with Google. Furthermore, it would enable Apple to acquire the necessary talent to accelerate its progress in artificial intelligence. The company appears to require external assistance to deliver its desired AI features, as evidenced by the recent delay in rolling out a more powerful, AI-centric Siri, a core component of its Apple Intelligence initiative.
Our take:
Acquiring an AI startup like Perplexity, Claude, or another AI company could significantly accelerate Apple’s progress in the competitive artificial intelligence landscape, providing them with essential talent and resources. Apple has a strong history of successful acquisitions, and the company maintains one of the largest cash reserves, making such a purchase financially feasible.
What are your thoughts? Comment down below in the comments section, our write to us on X @appleosophy.
