Apple has held internal discussions about possibly buying Perplexity AI, a fast-growing artificial intelligence startup, according to a report from Bloomberg’s Mark Gurman.
The move could help Apple improve its AI capabilities and reduce its reliance on Google’s search deal, which is currently under threat from U.S. antitrust regulators.
According to Bloomberg, Apple’s head of mergers and acquisitions, Adrian Perica, has discussed the idea with services chief Eddy Cue and other top AI executives. The talks are still at an early stage, and Apple has not yet made a formal offer or reached out to Perplexity’s management, the report said, citing unnamed sources.
Apple has reportedly met with Perplexity multiple times in recent months, and its AI team has been evaluating the startup’s technology. Another possibility being considered is a partnership, where Perplexity’s AI search engine could be integrated into Apple’s Safari browser or Siri.
In a statement, Perplexity said, “We have no knowledge of any current or future M&A discussions involving Perplexity.”
Eddy Cue, who oversees Apple’s services division, previously told jurors during the Google antitrust trial, “We’ve been pretty impressed with what Perplexity has done, so we’ve started some discussions with them about what they’re doing.”
Buying Perplexity could help Apple build its own AI-powered search engine, especially if its multi-billion-dollar agreement with Google is forced to end. That deal currently makes Google the default search engine on Apple devices and reportedly brings in about $20 billion a year.
Perplexity recently raised funding that valued the company at $14 billion. A deal at or near that figure would mark the largest acquisition in Apple’s history, surpassing its $3 billion purchase of Beats in 2014.
The news follows an earlier report that Meta had also tried to acquire Perplexity before investing $14.3 billion in Scale AI. Perplexity is reportedly also in talks with Samsung on a possible partnership, which could complicate any potential deal with Apple.
Perplexity said in its statement, “It shouldn’t be surprising that top manufacturers want to offer the best search and more accurate AI for their users. That’s Perplexity.”
At this point, given the sad state of Siri and Apple’s AI ambitions, any help would be welcomed with open arms.
Want to see more of our stories on Google?
P.S. Want to keep this site truly independent? Support us by buying us a beer, treating us to a coffee, or shopping through Amazon here. Links in this post are affiliate links, so we earn a tiny commission at no charge to you. Thanks for supporting independent Canadian media!
Apple is so far behind in developing AI, not sure they can catch up even if they buy out Perplexity or others.