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Apple Reportedly in Talks to Acquire Perplexity AI to Strengthen Its Artificial Intelligence Efforts

Apple has reportedly only held internal discussions about the potential purchase of Perplexity.

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Highlights
  • Apple has reportedly not made any bids to Perplexity
  • Meta reportedly tried to acquire Perplexity earlier this year
  • Perplexity is currently valued at $14 billion
Apple Reportedly in Talks to Acquire Perplexity AI to Strengthen Its Artificial Intelligence Efforts

Apple has reportedly only made three acquisitions that cost a billion dollars or more till date

Photo Credit: Pexels/Mateusz Taciak

Apple is reportedly considering making a bid to purchase the artificial intelligence (AI) startup Perplexity. As per the report, the Cupertino-based tech giant has internally discussed the possibility of the move to bolster its in-house development of AI models and features. The potential move comes at a time when the company's development of major features, such as the AI-powered Siri, has suffered several delays and still has no release date in sight. However, if the company does make a move to acquire Perplexity, it will be its costliest acquisition in history.

Apple Reportedly Discussed Acquisition of Perplexity

According to a Bloomberg report, the iPhone maker has internally held discussions about making a bid to purchase Perplexity. Citing unnamed sources with knowledge of the matter, the publication claimed that the possibility of the move was being considered by Adrian Perica, Vice President of Corporate Development at Apple, and the head of mergers and acquisitions.

The internal conversations are said to be at an early stage, and there is no guarantee that these will result in a formal bid. So far, the company has reportedly not reached out to the Perplexity management to inquire about an acquisition.

Bloomberg claimed that if this deal takes place, it could help Apple develop an in-house AI-powered search engine and push forward its trailing AI development. Additionally, developing the search engine will also help the tech giant prepare in case the antitrust case results in an unfavourable verdict and it loses out on the $20 billion (roughly Rs. 1.7 lakh crore) deal.

However, acquiring Perplexity will be a costly and unusual move for Apple. In its entire history, the tech has only ever made three deals that cost a billion dollar or more, a separate Bloomberg report claimed. Among them, the most expensive acquisition deal is said to be Beats. It was purchased for $3 billion (roughly Rs. 26,000 crore) in 2014. In contrast, after its latest funding round, Perplexity is valued at $14 billion (roughly Rs. 1.21 lakh crore).

While the acquisition of Perplexity is reportedly just an idea Apple is toying with, it stands to reason that such a deal will bolster not only the company's existing AI suite, but can also transform its future devices.

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