Apple is reportedly exploring the acquisition of Perplexity, a rapidly growing AI startup, to bolster its generative AI capabilities. This move comes as Apple’s own AI projects, including Siri, have faced setbacks, leading to a lawsuit from shareholders due to delayed feature rollouts. 
While competitors like OpenAI, Meta, and Microsoft are gaining momentum in the AI space, Apple is still struggling to catch up.
According to Bloomberg, Apple’s services chief, Eddy Cue, and head of mergers and acquisitions, Adrian Perica, have had private talks about a potential acquisition of Perplexity. Although these discussions are in the early stages and may not lead to a deal, Perplexity has denied any knowledge of such talks. If an acquisition doesn’t happen, a partnership with Apple could still be on the table, possibly integrating Perplexity’s AI-powered search engine into Safari or enhancing Siri with additional features set to roll out in 2026.
Apple’s interest in Perplexity could also be linked to the looming expiration of its lucrative deal with Google, which pays Apple $20 billion annually to make Google the default search engine on Apple devices. Antitrust scrutiny has raised questions about the future of this agreement, which could push Apple to seek alternatives. With Perplexity valued at $14 billion, an acquisition would be the most expensive in Apple’s history, surpassing the $3 billion spent on Beats in 2014. Despite the high cost, insiders suggest that Apple’s interest in Perplexity is genuine, with Eddy Cue mentioning talks during Google’s antitrust trial.
Craig Federighi, Apple’s Senior Vice President of Software Engineering, has also hinted at a broader AI strategy, stating that the company is collaborating with multiple partners to enhance its AI offerings. This suggests that while a full acquisition may not materialize, Apple’s future in AI could involve closer ties with Perplexity and other players in the field.