Apple mulls landmark acquisition of AI firm Perplexity amid search shift

Apple is reportedly exploring a major acquisition that could reshape its artificial intelligence strategy, with early-stage talks underway to potentially acquire Perplexity, a rising AI search startup recently valued at $14 billion. If completed, this would represent Apple’s largest purchase ever, eclipsing its $3 billion acquisition of Beats in 2014.

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Perplexity has gained rapid attention for its real-time, conversational AI-driven search engine, which could offer Apple a springboard into the generative AI space. The tech giant has held multiple meetings with Perplexity’s leadership, assessing both the firm’s technology and talent, though no formal bid has been made.

The move comes as Apple seeks to bolster its position in the evolving AI landscape. With rivals like OpenAI, Google, and Anthropic advancing swiftly, Apple currently lacks a signature generative AI product. Acquiring Perplexity would provide not only an AI-powered consumer search tool but also a skilled team capable of accelerating Apple’s own AI development.

Beyond innovation, the potential deal carries strategic implications. Apple’s lucrative $20 billion annual search agreement with Google is under legal scrutiny, creating uncertainty around its long-standing default search engine arrangement. Integrating Perplexity could offer an alternative search ecosystem, possibly within Safari or even as an enhancement to Siri.

However, Apple faces competition, as reports suggest Samsung is negotiating its own tie-up with Perplexity. Apple is also said to be considering a strategic partnership instead of a full acquisition to secure early access to the technology.