Apple Considers Acquisition of Perplexity AI to Enhance AI Search Capabilities

Apple Inc. is reportedly exploring the possibility of acquiring Perplexity AI, an artificial intelligence startup, as part of its strategy to enhance its generative AI capabilities and potentially reduce reliance on Google for search services. Preliminary discussions have been conducted between Adrian Perica, Apple's head of mergers and acquisitions, and key figures in Apple's services division, including Eddy Cue, as reported by Bloomberg on June 23, 2025.

The potential acquisition underscores Apple’s urgency to secure advanced AI technology amid increasing scrutiny over its long-standing partnership with Google, which remains the default search engine for Apple devices. This partnership reportedly generates approximately $20 billion annually for Apple but is now facing challenges due to ongoing antitrust investigations in the United States.

Perplexity AI, which is valued at $14 billion following a recent funding round, offers a next-generation search engine that provides real-time answers to user queries by leveraging current web data. If realized, this acquisition would mark the largest in Apple’s history, surpassing its $3 billion acquisition of Beats Electronics in 2014. However, no formal offer has been made, and Perplexity has stated that it is unaware of any discussions regarding a takeover.

In recent months, Apple has evaluated Perplexity's capabilities and considered various strategies, including the potential for a strategic partnership instead of a full acquisition. Such a partnership could involve integrating Perplexity’s technology into Apple’s Safari browser or Siri, enhancing the user experience significantly. Eddy Cue acknowledged Perplexity’s innovative potential during his testimony at the ongoing Google antitrust trial, highlighting the shift towards AI-driven solutions in the future of internet search.

The competitive landscape for AI talent is intensifying, with tech giants like Meta also actively recruiting key personnel in the field. Apple has made efforts to attract Daniel Gross, co-founder of Safe Superintelligence Inc., who previously sold his startup Cue to Apple in 2013, which significantly influenced Apple’s early AI functionalities.

As the tech industry increasingly prioritizes AI advancements, the implications of Apple’s potential acquisition of Perplexity AI could not only redefine its search capabilities but also impact its competitive stance against Google. The outcome of the ongoing antitrust proceedings and the evolving AI landscape may play crucial roles in shaping Apple's strategic decisions moving forward.

In summary, Apple's interest in acquiring Perplexity AI reflects its commitment to enhancing its AI capabilities and navigating the complexities of its relationship with Google in a rapidly changing technological environment. As discussions continue, the tech community watches closely for developments that could reshape the future of AI-powered search solutions and the broader market dynamics at play.