Apple considers buying AI startup Perplexity

Apple is thinking about purchasing Perplexity AI, a fast-growing company known for its AI-powered search engine, according to Bloomberg’s Mark Gurman. The talks are in early stages and might not lead to a deal, but Apple’s team, including mergers and acquisitions leader Adrian Perica and services chief Eddy Cue, is exploring the idea to boost its AI capabilities.

Perplexity, valued at $14 billion in its latest funding round, would be Apple’s biggest acquisition ever, topping its $3 billion Beats purchase from 2014. The move could help Apple create its own AI-driven search engine, especially as its $20 billion deal with Google to make Google the default search on Apple devices is at risk due to an ongoing antitrust case. Instead of buying Perplexity, Apple might partner with the startup to integrate its AI search into Safari and Siri.

The companies have met several times recently to discuss Perplexity’s tech. However, Samsung, Apple’s rival, is reportedly close to a major deal with Perplexity to add its AI features to Samsung phones, which could complicate things. Apple’s interest in Perplexity comes as it tries to catch up in the AI race. Its Apple Intelligence platform has been slow to roll out, and a revamped Siri is delayed until next spring. Acquiring Perplexity could bring Apple new AI talent and a well-known brand to strengthen its position in the fast-changing tech world.