Apple Considers Perplexity AI Acquisition as Google Deal Faces Uncertainty

Apple is reportedly exploring a significant move to strengthen its artificial intelligence (AI) capabilities. According to insiders, Apple executives are discussing the potential acquisition of Perplexity AI, a fast-growing startup renowned for its real-time, AI-powered search and answers. If finalized, this could mark Apple’s largest acquisition to date, surpassing its 2014 purchase of Beats for $3 billion.

Apple’s Search Engine Dilemma Amid Google Antitrust Pressure

Behind Safari’s search bar lies a massive business deal: Google reportedly pays Apple nearly $20 billion annually to stay the default search engine on its devices. However, this agreement is now under the microscope in an ongoing U.S. antitrust case.

If regulators decide to block or limit this arrangement, Apple will need an alternative strategy to safeguard both its search ecosystem and a vital revenue stream. Perplexity AI could offer that backup plan, enabling Apple to reduce reliance on Google while bolstering its AI capabilities.

Why Perplexity AI Is on Apple’s Radar

Perplexity AI is gaining attention for its AI-powered real-time answers that draw from live web content, offering users fast, factual responses. The startup recently secured funding at a reported $14 billion valuation, underlining its rapid growth and market potential.

A deal with Perplexity would give Apple not only innovative technology but also top AI talent. This move could help Apple leap ahead in the AI search race, especially as competitors like Meta and Samsung also show interest in Perplexity’s capabilities.

The Competitive Landscape: Big Tech’s AI Talent War

Apple is far from alone in eyeing Perplexity. Earlier this year, Meta attempted to acquire the startup to enhance its superintelligence AI division, but the deal did not materialize. Instead, Meta funneled billions into Scale AI and made key leadership hires.

Samsung, another major player in consumer tech, is also rumored to be negotiating a significant partnership with Perplexity. This could present complications for Apple, given the ongoing rivalry between the two brands, especially in the smartphone space.

Apple’s Struggles With Siri and the AI Gap

Apple’s journey in AI has faced delays and setbacks. The much-awaited Siri upgrade has been pushed back yet again. While the company’s new Apple Intelligence platform hinted at progress during its latest developer conference, it fell short of industry-shaking innovations.

Acquiring or partnering with Perplexity could help Apple close this gap. By integrating Perplexity’s technology, Apple could bring smarter responses to Siri, improve search capabilities in Safari, and enhance AI-driven features across its apps.

Buyout or Partnership: Apple’s Possible Strategies

At this stage, Apple is weighing two main options:

• A full acquisition of Perplexity AI

• A strategic partnership where Perplexity’s AI engine powers parts of Siri and Safari

Sources say Apple executives, including Adrian Perica (M&A chief) and Eddy Cue (head of services), have held several internal discussions and reviewed Perplexity’s tech. While no formal offer has been made, the interest appears serious. During the Google trial, Cue even praised Perplexity’s work, suggesting Apple sees potential in shifting toward AI-driven search.

The Stakes for Apple’s Future

If Apple loses its lucrative deal with Google, it could take a significant hit in annual revenue. Perplexity represents an opportunity for Apple to regain control over search on its devices, while also positioning itself as a leader in the growing AI-powered search market.

Even if a full acquisition doesn’t materialize, a partnership could still help Apple boost Siri’s intelligence and make its search features more competitive.

What Comes Next?

Apple appears to be waiting for the outcome of the Google antitrust case before making a decisive move. However, one thing is certain: AI search is emerging as the next major battlefield in tech. With competitors making aggressive plays, Apple is eager to avoid being left behind.

Whether through acquisition or partnership, Apple’s next step could reshape how its devices deliver search and AI-powered features.