Could Apple be gearing up to make a splash in the AI-powered search engine market? According to Mark Gurman of Bloomberg, Cupertino’s executives have initiated preliminary talks for a potential acquisition of Perplexity AI, a rising startup in the field of AI-driven conversational search.
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A Promising Addition to the Apple Ecosystem
Established in 2022, Perplexity AI has quickly become a standout player with its conversational search engine that combines generative AI and real-time web data access. Its rapid success has caught the eye of several tech giants, including Apple, which has been looking to bolster its AI strategy for months, particularly with Siri and Safari.
Among the executives involved in the discussions are Adrian Perica (head of mergers and acquisitions), Eddy Cue (vice president of services), and several leaders overseeing AI projects. Mark Gurman notes, however, that these talks are still at an early stage and may not lead to a deal. True to its secretive nature, Apple has declined to comment. Meanwhile, Perplexity has stated it is not aware of any ongoing or upcoming discussions
regarding an acquisition.
A $14 Billion Acquisition?
With a current valuation estimated at $14 billion, Perplexity would represent Apple’s largest acquisition ever, far surpassing its $3 billion purchase of Beats in 2014. Such a move would signify a major strategic shift, positioning Cupertino in the realm of alternative search engines and generative AI against competitors like Google, OpenAI, or Microsoft.
This deal could also become a focal point of legal scrutiny: Apple currently earns about $20 billion annually through its agreement with Google to make it the default search engine on iOS. However, this deal is directly threatened by the ongoing antitrust trial against Google. An unfavorable ruling for Google could prompt—or even force—Apple to develop or acquire its own AI search solution.
Partnership or a Race Against Time?
An alternative to outright acquisition could be a technological partnership: Apple could incorporate Perplexity’s conversational capabilities into Safari or Siri. The two companies have reportedly met several times to discuss potential technological synergies.
However, another player could potentially outpace Apple: according to several sources, Samsung is also in advanced discussions with Perplexity to integrate its AI services into its Galaxy smartphones. A deal with the South Korean rival would significantly complicate any attempt by Apple to draw closer to the startup.