Apple Could Challenge Google in Search with Perplexity AI Acquisition

Apple is said to be evaluating a possible acquisition of Perplexity AI, a fast-growing AI-powered search platform, according to a new report. Sources indicate that while internal discussions have been initiated, Apple has not yet approached Perplexity’s leadership directly, and the matter remains in its early stages.

Early Discussions Among Apple Executives

The talks reportedly involve Adrian Perica, Apple’s head of mergers and acquisitions, who has been in discussion with Eddy Cue, Apple’s senior vice president of services, along with other internal AI experts, regarding the potential integration of Perplexity’s AI search tools into Apple’s ecosystem.

“Adrian Perica, Apple’s head of mergers and acquisitions, has reportedly discussed the potential of integrating Perplexity’s AI-driven search tools with Apple’s services chief Eddy Cue and other AI leaders.”

Strategic Move to Strengthen AI and Search

If the deal progresses, Apple may embed Perplexity’s technology into the Safari browser, signaling a significant shift from its traditional reliance on Google as the default search engine. The move reflects Apple’s growing interest in AI search capabilities as platforms like Perplexity and ChatGPT grow increasingly popular, particularly among younger users, thereby threatening Google’s dominance.

Apple Joins the AI Investment Race

This potential acquisition comes shortly after Apple introduced Apple Intelligence in its latest iOS updates, highlighting its increased focus on AI-enhanced user experiences.

“Apple’s move follows its recent launch of Apple Intelligence in iOS updates, demonstrating its commitment to enhancing the user experience with AI.”

Other tech giants are also racing to invest in AI. For instance, Meta was reportedly interested in Perplexity earlier this year, and recently pledged nearly $15 billion to Scale AI.

Perplexity’s Market Value and Competitive Edge

Valuation Soars to $14 Billion

According to a news agency, Perplexity recently completed a funding round that valued the company at $14 billion. The AI startup, which is backed by NVIDIA, provides intelligent search results in the form of concise, AI-generated summaries, directly competing with OpenAI’s ChatGPT and Google’s Gemini.

“News agency’s report also noted that Perplexity recently closed a funding round that valued the startup at $14 billion.”

Apple’s Largest Acquisition If Finalized

Should this deal materialize at the current valuation, it would represent Apple’s biggest-ever acquisition, reflecting how critical AI is becoming in the tech industry’s next phase of innovation.

About Perplexity AI

Perplexity AI is a relatively new but rapidly growing artificial intelligence company that is redefining the concept of search. Founded in December 2022 by a team of prominent AI researchers, including Aravind Srinivas, Johnny Ho, Andy Konwinski, and Denis Yarats, Perplexity AI aims to be an "answer engine" rather than just a search engine. It leverages large language models (LLMs) and real-time web search to provide direct, concise, and sourced answers to user queries, fundamentally changing how users interact with information.

Core Concept: The "Answer Engine"

Unlike traditional search engines (like Google) that provide a list of links for you to sift through, Perplexity AI processes your query, searches the web in real-time, synthesizes the information, and presents you with a direct answer, complete with numbered citations to the original sources. This emphasis on transparency and verifiability is a key differentiator.

The idea is to reduce "search friction" by giving users immediate, actionable information without requiring them to navigate multiple websites. It's like having a highly knowledgeable research assistant that summarizes findings and provides the references.

Key Features and Capabilities of Perplexity AI

Perplexity AI stands out with several innovative features:

• Conversational AI Approach: Users can interact with Perplexity in a natural, conversational manner, asking follow-up questions, and the AI remembers the context of previous queries for a seamless dialogue.

• Real-time Web Search and Synthesis: It doesn't rely on a static knowledge base but actively searches the internet in real-time, ensuring responses are up-to-date and relevant. It pulls data from various sources, including news outlets, academic papers, blogs, and other websites.

• Source Citations: Every answer includes numbered footnotes with links to the original web pages. This allows users to easily verify the information's credibility and delve deeper into specific sources.

• Model Selector (Perplexity Pro): For Pro subscribers, Perplexity allows users to choose different underlying AI models (like GPT-4o, Claude, Gemini, or Perplexity's own "Sonar" models) to generate answers, offering flexibility and control over the response style and depth.

• Quick Search vs. Pro Search:

  • Quick Search: Provides immediate, concise responses.

  • Pro Search: Offers more detailed and comprehensive answers, often involving deeper research across multiple sources. Pro users get unlimited Pro searches, while free users have a limited number.

• "Discover" Tab: A curated feed of trending topics and news, allowing users to explore current events with AI-summarized reports and cited sources.

• "Spaces": Personalized workspaces where users can organize their research, store answers, add notes, and even upload documents for AI analysis. This feature facilitates collaboration and deeper dives into specific subjects.

• Perplexity Pages (Beta): A feature that allows users to generate entire web pages (like blog posts or articles) from a query, complete with relevant images and interactive tables of contents.

• File Analysis: Users can upload documents (like PDFs, plain text, code, or images) for summarization and Q&A, extracting key insights rapidly.

• Voice Search: Available in the mobile app for convenient interaction.

• Incognito Mode: A privacy feature that allows users to search without saving their query history.

Conclusion

Apple's reported interest in acquiring Perplexity AI marks a pivotal move in its long-term artificial intelligence strategy. As user expectations shift toward more intelligent, conversational, and contextual search experiences, Apple’s integration of Perplexity’s AI-driven search capabilities could reshape how users interact with its ecosystem—particularly through Safari and Apple Intelligence.

The deal, if finalized, would represent Apple’s largest acquisition to date, given Perplexity’s recent valuation of $14 billion and strong backing from NVIDIA. It also reflects growing pressure on Apple to innovate beyond its reliance on Google Search and keep pace with rivals like Meta and Microsoft, both aggressively investing in generative AI.

With platforms like ChatGPT and Gemini gaining ground, especially among younger users, Apple’s potential partnership with Perplexity signals its intent to remain competitive in the AI arms race. This move not only strengthens Apple’s AI capabilities but also aligns with broader industry trends that are redefining the future of search and digital interaction.