Apple executives are considering a major move in the AI space. Senior leaders, including M&A head Adrian Perica and services chief Eddy Cue, have held internal talks about acquiring Perplexity AI, a fast-growing startup known for its real-time search engine powered by generative AI. The goal: to secure top talent, strengthen Apple’s AI capabilities, and position the company to compete more aggressively in search.
The discussions remain internal, and no offer has been made to Perplexity. But the possibility signals Apple’s growing urgency to expand its AI footprint. A deal could help offset future risks if Apple loses its $20 billion-per-year search deal with Google, now under scrutiny in a U.S. antitrust trial. A Perplexity acquisition would also mark Apple’s largest-ever purchase, surpassing its $3 billion Beats deal in 2014.
Strengthening AI Through Acquisition or Partnership
Perplexity offers a consumer-facing product that provides direct, cited answers using up-to-date web content. That capability aligns with Apple’s broader AI goals, including plans to overhaul Siri and develop a native AI search tool. Internally, Apple has been evaluating Perplexity’s technology, and conversations have included potential alternatives to an acquisition, such as a deep partnership or product integration within Safari and Siri.
But Apple faces competition. Samsung is reportedly working toward its own partnership with Perplexity, which could complicate Apple’s plans. Samsung remains Apple’s main rival in smartphones, and both companies are racing to embed smarter AI features into their devices.
Strategic Timing and the Google Factor
Any serious move on Perplexity likely hinges on the outcome of the Google antitrust trial. Apple relies heavily on its Google search deal, but executives are preparing for scenarios where that partnership unravels. Cue acknowledged during his testimony in May that the future of search lies with AI, not traditional indexes. He specifically praised Perplexity as one of the more promising developments in this shift.
Apple also continues to recruit aggressively in the AI sector. It has tried to hire Daniel Gross, co-founder of Safe Superintelligence Inc. Gross previously sold his startup Cue to Apple in 2013, contributing to early AI work in iOS. Apple’s current AI project, led by Robby Walker, is developing an internal product called Knowledge to compete with tools like ChatGPT.
As reported by Bloomberg, Perplexity recently closed a funding round valuing the company at $14 billion. Meta reportedly tried and failed to acquire it earlier this year. Apple declined to comment, while Perplexity stated it had no knowledge of any current or future M&A talks.
If Apple moves forward, the acquisition could change the company’s AI strategy and set the tone for its next chapter in search.