
Apple is currently facing mounting pressure in the realm of generative AI, which has led to a shareholder lawsuit regarding delays in Siri’s feature updates. This situation underscores Apple’s challenges as other tech giants like OpenAI, Meta, and Microsoft continue to outpace the Cupertino-based company in AI development. In a bid to strengthen its position, Apple is contemplating acquiring Perplexity, a prominent AI startup known for its innovative solutions.
Potential Acquisition of Perplexity: A $14 Billion Investment
According to recent reports from Bloomberg, discussions have taken place between Apple’s head of services, Eddy Cue, and Adrian Perica, who leads the mergers and acquisitions team. These negotiations about acquiring Perplexity are still in their infancy, leaving the outcome uncertain. Notably, Perplexity has publicly stated that it has “no knowledge of any current or future M&A discussions.” Despite this, the prospect of collaboration between Apple and Perplexity remains likely, especially with the potential for integration of Perplexity’s AI-powered search engine into Apple’s Safari browser.
Such collaboration could significantly enhance Siri’s capabilities, with new features expected to roll out around 2026. The impetus for these discussions may stem from the looming end of a lucrative deal between Apple and Google, which sees the latter paying $20 billion annually for default search engine status on Apple devices. Should this agreement dissolve due to regulatory scrutiny, Apple would have strong motivation to pursue Perplexity more aggressively.
The financial stakes are high; Perplexity’s current valuation stands at $14 billion. If Apple were to proceed with an acquisition at this price, it would mark the company’s largest purchase to date, surpassing the $3 billion spent on the acquisition of Beats in 2014. The high cost illustrates Apple’s commitment to revitalizing its AI offerings in a competitive landscape.
Furthermore, industry insiders point out that Apple’s interest in Perplexity is not without precedent. During Google’s ongoing antitrust trial, Eddy Cue acknowledged previous discussions with Perplexity, indicating Apple’s recognition of the startup’s impressive achievements in the AI space. Craig Federighi, Apple’s Senior Vice President of Software Engineering, has also highlighted that the company is actively collaborating with multiple partners to enhance its AI capabilities, suggesting that a partnership with Perplexity could be on the horizon.
For ongoing developments on this potential acquisition, refer to the sources below:
News Source: Bloomberg
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