Apple Eyes AI Future with Perplexity Acquisition Discussions

Apple has recently initiated internal discussions regarding the potential acquisition of AI startup Perplexity AI, signifying its urgent need to bolster its AI talent and technological capabilities.

Sources familiar with the matter have disclosed that Apple's head of mergers and acquisitions, Adrian Perica, along with Eddy Cue, who oversees Apple’s services, and key decision-makers from Apple’s AI strategy team, have explored this idea. It is reported that these discussions are in their infancy, and a formal acquisition offer might not materialize. Due to the confidential nature of this information, these individuals requested anonymity.

If the deal goes through, Apple would have the opportunity to develop its own AI-driven search engine, addressing the potential rupture in its long-standing collaboration with Google. The current agreement positions Google as the default search provider for Apple devices, generating approximately $20 billion per year for Apple. However, this partnership is presently under threat from antitrust scrutiny by U.S. regulators.

As of now, Apple executives have not engaged Perplexity’s management regarding any acquisition proposals.

In a recent statement, Perplexity AI commented, “We are unaware of any current or future merger discussions involving the company.” Meanwhile, Apple declined to make any comments.