Apple’s AI Crossroads: Buy Perplexity or Reinvent Siri?

Apple faces growing pressure from Wall Street analysts who are urging the company to make a significant acquisition of Perplexity, an AI-powered answer engine. The push for Apple to buy Perplexity stems from concerns over the evolving AI landscape and the increasing competition in the search and AI assistant markets. Analysts argue that acquiring Perplexity could strengthen Apple’s position in artificial intelligence, particularly as the company seeks to enhance its Siri capabilities and keep pace with rivals like Google and Microsoft [1].

Recent developments have intensified the debate. Perplexity has formed a high-profile partnership with PayPal, granting early access to its new AI-powered Comet browser for PayPal and Venmo users in the U.S. and select global markets. The collaboration includes a free 12-month trial of Perplexity Pro, valued at $200, offering features like an integrated AI assistant, answer-focused search, and product comparisons. The partnership highlights Perplexity’s growing influence in the AI space and underscores its value as a potential strategic asset [1].

Apple, according to reports, is reportedly planning to enhance its Siri platform to better compete with AI-driven tools like Perplexity. This internal strategy has been viewed as an alternative to a costly acquisition, though analysts remain skeptical. They argue that while internal improvements to Siri could be beneficial, they may not be sufficient to match the capabilities of Perplexity’s AI engine, which is already generating traction in real-world applications [1].

The broader tech industry is watching closely as Apple navigates its AI strategy. With companies like Google and Microsoft making aggressive investments in AI, Apple’s ability to innovate and adapt is under intense scrutiny. Perplexity’s recent expansion into partnerships with major platforms like PayPal suggests that it is gaining traction as a credible alternative to traditional search engines, offering real-time, accurate answers with in-line citations and deep research capabilities [1].

Despite the growing interest from Wall Street, Apple has not publicly commented on potential acquisition plans. The company has historically been cautious with large-scale acquisitions in the AI space, preferring to develop its own technologies internally. However, as competition intensifies and user expectations evolve, the pressure to act may become increasingly difficult to ignore [1].

Source: [1] Skip the Waitlist: PayPal and Venmo Users Offered Early Access to Perplexity's New Comet Browser with Free Perplexity Pro Subscription (https://newsroom.paypal-corp.com/2025-09-03-Skip-the-Waitlist-PayPal-and-Venmo-Users-Offered-Early-Access-to-Perplexitys-New-Comet-Browser-with-Free-Perplexity-Pro-Subscription)