Apple Eyes $14 Billion Perplexity AI Acquisition to Boost Search Engine Capabilities

Coin WorldSaturday, Jun 21, 2025 7:23 pm ET
2min read

Apple Inc. executives have engaged in internal discussions regarding a potential acquisition of the artificial intelligence startup Perplexity AI. This move is driven by the need to bolster Apple's AI capabilities and talent pool. Adrian Perica, Apple’s head of mergers and acquisitions, has been involved in these discussions with services chief Eddy Cue and other top AI decision-makers. However, these talks are in the early stages and may not result in a formal offer.

One of the primary motivations behind this potential acquisition is to develop an AI-based search engine. This initiative is part of Apple's broader strategy to mitigate the potential loss of its longstanding arrangement with Google, which generates approximately $20 billion annually for Apple. This partnership is currently under threat from US antitrust enforcers, who are scrutinizing the agreement.

To date, Apple executives have not engaged in discussions with Perplexity management regarding a potential bid. Earlier this year, Meta Platforms Inc. attempted to acquire Perplexity but ultimately failed to reach an agreement. Perplexity, which provides real-time answers to questions using the latest information from the web, has recently completed an investment round that valued it at $14 billion. A deal at or near this valuation would be the largest acquisition in Apple’s history, surpassing the $3 billion takeover of Beats in 2014.

Apple and Meta have been competing for AI talent. Meta recently engaged in discussions to hire Daniel Gross, the co-founder of AI company Safe Superintelligence Inc. While these discussions are advanced, Apple has also attempted to persuade Gross to join its team. In 2013, Gross sold a startup named Cue to Apple, which helped form the basis of some early AI features in iOS. One of Gross’ Cue co-founders, Robby Walker, oversaw the Siri voice assistant until this year and is now leading an Apple project aimed at creating a rival to OpenAI’s ChatGPT that can use data from the open web.

Perica and Eddy Cue, who both report to Apple Chief Executive Officer Tim Cook, are leading the AI acquisition and recruiting efforts. The hunt for talent is part of a broader bid to catch up in generative AI, an area where Apple has been slow to deliver its Apple Intelligence platform and still lags behind rivals in key features. A revamped Siri was delayed indefinitely this year, with the company now aiming to have it ready by next spring.

Apple unveiled a relatively modest slate of new AI enhancements at its Worldwide Developers Conference earlier this month. The latest features include live translation capabilities and a deeper partnership with OpenAI on ChatGPT-based image generation. Buying Perplexity would give Apple an infusion of AI talent, a known brand in the AI space, and a consumer product. A deal could also potentially assist with future recruiting efforts.

Apple has also discussed an alternative plan: teaming up with Perplexity instead of buying it. A partnership would involve adding Perplexity as an AI search engine option in Apple’s Safari web browser and integrating it into Siri. Apple has met multiple times in recent months with Perplexity, and its AI team has been actively evaluating the technology, indicating a potential close relationship with the company.

One major obstacle in the process could be an in-the-works deal between Perplexity and Samsung Electronics Co., which plans to announce a deep partnership with the startup. Samsung is Apple’s biggest competitor in smartphones, and AI features have become a critical new arena for the two rivals. In its statement, Perplexity said it shouldn’t be surprising that top manufacturers want to offer the “best search and more accurate AI for their users.”

Cue, whose department includes Apple’s streaming services and iCloud, previously expressed an interest in Perplexity. During the Google antitrust trial in May, he told jurors that the industry is shifting away from standard internet searches to AI tools. He outlined a scenario in which AI search engines could quickly supersede Google’s current offering. “We’ve been pretty impressed with what Perplexity has done, so we’ve started some discussions with them about what they’re doing,” he said.