APPLE
When your Plan A is Google, but your Plan B is Perplexity
Apple is quietly exploring a possible acquisition, or at least a close partnership, with Preplexity AI, the startup behind an AI-powered search engine that pulls real-time info from the web.
Senior execs, including M&A lead Adrian Perica and service chief Eddy Cue, have had early internal discussions, though nothing formal has been put forward yet.
The idea is to strengthen Apple’s in-house AI capabilities, especially in search, as its $20 billion-a-year deal with Google faces increasing pressure from US antitrust regulators.
While no talks have taken place, with Perplexity’s leadership, Apple has met with them several times to evaluate their tech.
One option on the table is a partnership, adding Perplexity as a search engine option in Safari or even baking it into Siri.
But a deeper move, like an acquisition, could mark Apple’s biggest ever, topping its $3B purchase of Beats in 2014.
Perplexity's latest valuation sits at $14B.
Meta also tried and failed to buy Perplexity earlier this year, then pivoted to invest $14.3B in Scale AI to build its own superintelligence unit.
The AI talent war doesn’t stop there; both Apple and Meta have been trying to recruit Daniel Gross, who sold a startup to Apple in 2013 and helped shape Siri’s early AI foundations.
Here’s what matters:
Apple is weighing a bid or partnership with Perplexity as it rethinks its search and AI strategy.
The $20B Google search deal may not last, prompting Apple to explore alternatives.
Samsung is also in talks with Perplexity, setting the stage for another round in the Apple vs. Samsung rivalry.
Not another love triangle
For Apple, catching up in generative AI is now a priority.
It’s been slow to launch its Apple Intelligence platform, and Siri’s major revamp has been delayed until spring 2025.
Its WWDC updates included small additions like live translation and tighter ChatGPT integration, but nothing game-changing.
One potential snag: Samsung is reportedly finalising a partnership with Perplexity too - yikes.
That could complicate Apple’s plans, especially as the race to embed smarter AI into smartphones heats up.
This is just like “you up?” energy from Apple to Perplexity.