Apple Reportedly Plans To Buy Perplexity AI

Apple executives have discussed acquiring Perplexity AI, an AI-powered search engine that provides answers with citations, Bloomberg reports. The main reasons for the acquisition are reportedly securing more AI talent and developing an AI search engine.

Apple reportedly met several times with Perplexity over the past few months but has yet to make a bid. The talks are still in early stages and may not lead to a formal offer.

According to sources familiar with the matter, Adrian Perica, Apple’s head of mergers and acquisitions, has discussed acquiring Perplexity AI with services SVP Eddy Cue and other top decision-makers at the company. The executives are also reportedly considering an alternative scenario: partnering with Perplexity instead of buying it outright.

In May, during a testimony for Google’s ongoing Search antitrust case, Cue unveiled that Apple discussed a possible Safari integration with Perplexity. Cue was called to testify because of Apple’s long-standing search deal with Google.

As part of the arrangement, Apple makes Google’s search engine the default on iPhone. In turn, it receives billions of dollars a year from the deal. If regulators demand that Apple cut ties with Google, a Perplexity acquisition could help the company develop its own AI-powered browser.

While Apple has introduced some AI features, it has yet to position itself as a leader in AI innovation. A few months ago, Apple delayed the rollout of a more advanced Siri, one of the central features of its Apple Intelligence platform, the company’s proprietary AI system. If the acquisition goes through, Apple might use Perplexity’s technology to improve Siri.

Apple’s cautious approach to AI innovation has cost it the title of the world’s most valuable company several times since the start of the AI boom. Nvidia – a front runner in the AI revolution – has briefly overtaken the iPhone maker in market value on multiple occasions.

Tech giants are in a fierce race to secure AI leadership. Recently, Meta made a major investment in startup Scale AI to attract fresh talent and accelerate its AI initiatives. Meanwhile, according to Bloomberg, Apple is competing with Meta to recruit Daniel Gross, founder of the AI startup Safe Superintelligence Inc.

A Perplexity representative told Reuters, “We have no knowledge of any current or future M&A discussions involving Perplexity.” Apple declined to comment.