According to a report by Bloomberg’s Mark Gurman reports Apple Inc. is reportedly in early discussions about a possible acquisition of Perplexity AI, a rapidly growing artificial intelligence startup, . This potential move is a part of Apple’s broader strategy to strengthen its in-house AI capabilities and reduce its dependence on Google’s search partnership, which is currently under scrutiny by U.S. antitrust authorities.
Apple’s Strategic AI Expansion
Sources familiar with the matter revealed that Adrian Perica, Apple’s Head of Mergers and Acquisitions, has discussed the potential acquisition with Eddy Cue, Apple’s Senior Vice President of Services, and other key AI leaders within the company. While discussions are ongoing, the talks remain preliminary, and Apple has not made a formal offer or directly approached Perplexity’s leadership yet.
Apple has reportedly held multiple meetings with Perplexity AI over recent months, with internal teams actively evaluating the startup’s technology. Another option Apple is considering is a strategic partnership, where Perplexity’s AI-powered search engine could potentially be integrated into Apple’s native platforms like Safari browser or Siri.
Perplexity Responds to Speculation
Responding to the reports, Perplexity AI issued a statement, saying, “We have no knowledge of any current or future M&A discussions involving Perplexity.”
Notably, Eddy Cue previously acknowledged Perplexity’s innovations during his testimony in the Google antitrust trial, stating that Apple has been impressed by the startup’s progress and has engaged in early-stage conversations about its work.
Potential Impact on Apple’s Search Strategy
Apple’s interest in Perplexity AI is likely driven by its long-term goal to develop its own AI-powered search capabilities, particularly in the event that its multi-billion-dollar deal with Google comes to an end. This agreement, which reportedly generates around $20 billion in annual revenue for Apple, currently ensures Google remains the default search engine on Apple devices.
Acquiring Perplexity could enable Apple to create a competitive in-house search engine, reducing its reliance on external partners and further strengthening its ecosystem.
Competitive Interest and Valuation
Perplexity AI was recently valued at $14 billion following a funding round, making a potential acquisition one of the largest in Apple’s history — surpassing its $3 billion acquisition of Beats in 2014.
The AI startup has also attracted interest from other tech giants, including Meta, which reportedly considered acquiring Perplexity before investing in Scale AI. Additionally, Perplexity is said to be in separate partnership talks with Samsung, which could further complicate negotiations.
In its official statement, Perplexity emphasized its value proposition, saying, “It shouldn’t be surprising that top manufacturers want to offer the best search and more accurate AI for their users. That’s Perplexity.”