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Apple is Considering Acquiring Perplexity AI

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Apple is Considering Acquiring Perplexity AI

Apple insiders are reportedly considering an acquisition of Perplexity AI, the rapidly growing AI-powered search startup valued at roughly $14 billion after its latest funding round. Such a deal, if pursued, would eclipse all prior Apple M&A (Mergers and Acquisitions), dwarfing the 2014 Beats buyout (~$3 billion.

Sources say Apple’s top M&A executive, Adrian Perica, has informally floated the idea, including discussions with Services chief Eddy Cue and other AI leads. However, it remains strictly internal; no formal bid has been made, nor have negotiations started with Perplexity’s leadership.

Why Perplexity?

Apple is under pressure to catch up in AI, particularly with Siri lagging behind rivals. While Apple recently launched its “Apple Intelligence” initiative, rollout delays and minimal AI demos at WWDC have fuelled concerns. Perplexity brings ready-made conversational search tech and a strong consumer-facing product, assets that could be integrated into Safari or Siri. It’s a defensive move too, Apple currently routes billions through Google’s search deal (~$20 billion annually) but recent DOJ (Department of Justice) scrutiny may end that agreement.

More than just him and Cue, other AI leads are involved in the talks. Bloomberg reports this aligns with larger trends, Meta reportedly pursued Perplexity earlier and pivoted toward a $14.8 billion investment in Scale AI. Meanwhile, Apple may be weighing either a full acquisition or a strategic partnership to embed Perplexity into Safari or Siri.

What’s at Stake for Apple?

Buying Perplexity could rapidly boost its AI search capabilities and market perception while reducing reliance on Google. There’s no guarantee the acquisition will materialize, it’s still in speculative internal phases with Apple officially declining comment.

What’s at stake for Google?

This adds to mounting pressure. Alphabet’s stock dropped ~7–9% after recent testimony confirmed Apple’s active search-alternative evaluation.

What’s at stake for the AI space?

Consumer interest in AI-first search is rising especially among Gen Z, and Perplexity is gaining traction as a serious contender alongside ChatGPT and Google Gemini.

Trigger

Why it Matters

Public filings or leaks

Any formal offer or partnership would signal Apple’s final AI play

Regulatory developments

DOJ or EU decisions on the Safari‑Google deal could spur Apple into action

Competitor moves

Follow Meta’s investments or other bids on Perplexity, this remains a broader AI-cash race

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