Reports are swirling in the tech world: Apple may be eyeing Perplexity AI, a rising star in the AI-powered search engine space. While nothing has been officially proposed yet, internal discussions—including top executives like Adrian Perica, Apple’s head of M&A, and services chief Eddy Cue—suggest there’s more than a passing interest. If Apple does move forward, and the valuation nears Perplexity’s reported $14 billion, it would mark the tech giant’s largest acquisition to date. But more importantly, it could signal a serious pivot in Apple’s AI ambitions, especially when it comes to reducing its reliance on Google for search.
Key Takeaways:
- Apple is reportedly exploring the acquisition of Perplexity AI, an emerging AI-powered search engine.
- The deal could potentially be Apple’s biggest, with a reported valuation near $14 billion.
- It’s seen as a move to supercharge Apple’s generative AI capabilities, particularly for Siri.
- A successful acquisition could shift Apple away from its longstanding reliance on Google search.
- Apple is also looking into a strategic partnership as an alternative route.
- All of this unfolds amid intense AI industry competition and growing regulatory scrutiny over Apple-Google ties.
The Shifting Sands of AI and Search
Artificial intelligence is reshaping the way we interact with information, and fast. Traditional search engines that spit out lists of links are increasingly facing competition from tools that provide direct, summarized answers. That’s where Perplexity AI comes in. Launched in 2022 by a group of seasoned engineers—Aravind Srinivas, Denis Yarats, Johnny Ho, and Andy Konwinski—the startup has positioned itself as something more than just another search engine. It bills itself as an “answer engine,” using real-time web data and conversational interfaces to provide clear, sourced responses.
Perplexity’s technology isn’t just flashy; it’s practical. It handles complex questions with ease, pulls information from live web sources, and synthesizes it into brief, reliable summaries—all while offering source links. The platform runs on a freemium model, with a free version and a “Pro” tier that unlocks more advanced features and AI models. Growth has been rapid, reportedly processing hundreds of millions of queries monthly. Backing from tech heavyweights like Jeff Bezos and NVIDIA only adds to its credibility and perceived value in the market.
Apple’s AI Ambitions and the Google Equation
Apple has always been somewhat reserved when it comes to discussing AI. Sure, Siri debuted in 2011 and was one of the first mainstream digital assistants. But in recent years, competitors like Google and OpenAI have taken the spotlight, racing ahead in generative AI development. Apple, on the other hand, has opted for a more measured rollout—which has led some to wonder if it’s falling behind.
Its recently announced “Apple Intelligence” suite is a step forward, combining on-device and cloud processing to support everything from smart writing tools to a more functional Siri. Still, many observers feel Apple needs a leap, not just a step. And that brings us back to Perplexity.
Part of the urgency may come from its arrangement with Google. Apple earns billions annually from making Google the default search engine on its devices. But this partnership is under the microscope from antitrust regulators, and a shakeup could hurt Apple’s revenue. Building or acquiring its own search infrastructure could provide a safety net—and potentially, a competitive edge.
Why Perplexity? A Strategic Fit
Perplexity’s appeal to Apple isn’t hard to decipher:
- Smarter Siri: Its tech could breathe new life into Siri, making it more responsive, context-aware, and informative. Imagine asking your iPhone a tough question and actually getting a helpful, cited answer in return. That’s the promise.
- AI-Powered Search: If Apple does go all in, it could finally have a native, AI-driven search engine. That means better integration across Apple platforms and potentially a stronger emphasis on user privacy—a core Apple value.
- Talent Acquisition: The team at Perplexity includes some top-tier AI talent. Bringing them under Apple’s roof would speed up innovation and keep pace with rivals.
- Competitive Edge: Let’s be honest, the AI race isn’t slowing down. Acquiring Perplexity would give Apple a ready-made, proven solution to help stay relevant in the search and AI space.
Considering that Apple’s largest acquisition to date was Beats Electronics at $3 billion, shelling out up to $14 billion would be unprecedented. But then again, so is the current AI landscape.
Beyond Acquisition: A Partnership in the Works?
Of course, an outright acquisition isn’t the only card on the table. Apple is also reportedly considering a partnership model. This could involve integrating Perplexity’s technology directly into Siri or Safari, without a full buyout. Eddy Cue has already praised Perplexity’s work, noting that their approach aligns with Apple’s broader ambitions in search.
This kind of partnership would give Apple access to cutting-edge AI without fully absorbing the startup. It might also be less disruptive internally, giving both companies more flexibility.
One thing is clear: Apple is at a crossroads when it comes to AI. Its recent infrastructure investments, like the planned server facility in Houston, show it’s preparing for a more AI-centric future. The “Apple Intelligence” initiative is a strong start, but there’s still a gap between Apple and other tech titans.
Whether it’s through acquiring Perplexity or forging a strategic alliance, the next steps Apple takes could shape not just its products, but the future of search and digital interaction as we know it.
FAQ Section
Q1: What is Perplexity AI?
A1: Perplexity AI is an AI-powered “answer engine” that delivers summarized, cited responses to user questions using large language models and live web data. It moves beyond traditional link-based search engines.
Q2: Why is Apple reportedly interested in acquiring Perplexity AI?
A2: Apple sees Perplexity as a way to strengthen its AI capabilities, especially for Siri, and to reduce its dependence on Google for search.
Q3: How much is Perplexity AI valued at?
A3: The company was recently valued at around $14 billion following a major funding round.
Q4: Would this be Apple’s biggest acquisition?
A4: Yes, it would surpass the $3 billion Apple spent on Beats Electronics in 2014, making it the largest in the company’s history.
Q5: What benefits might users see from Perplexity’s integration?
A5: Users could experience a significantly improved Siri and smarter, more accurate search results in Safari, thanks to AI-driven responses and live web data.
Q6: Is a partnership also being considered?
A6: Yes. Apple is reportedly open to a strategic partnership as an alternative to a full acquisition, which could still bring Perplexity’s tech into Apple services.
