Apple Eyes Acquisition of AI Startup Perplexity AI to Boost Search Capabilities

Apple Inc. is reportedly in the early stages of internal discussions about acquiring Perplexity AI, a rapidly growing startup specializing in artificial intelligence-powered search technologies. This potential move underscores Apple's strategic intent to enhance its AI capabilities and reduce reliance on external partners like Google for search functionalities.

The deliberations involve key Apple executives, including Adrian Perica, Vice President of Corporate Development, and Eddy Cue, Senior Vice President of Services. These discussions are preliminary, with no formal offer extended to Perplexity AI. The startup, founded in 2022, has quickly risen to prominence with its conversational search engine and was recently valued at $14 billion following a funding round. Acquiring Perplexity AI would mark Apple's largest acquisition to date, surpassing its $3 billion purchase of Beats in 2014.

Background on Perplexity AI

Perplexity AI was established in 2022 by Aravind Srinivas, Johnny Ho, Denis Yarats, and Andy Konwinski. The company offers a conversational search engine that synthesizes responses from web data, positioning itself as a competitor to traditional search engines. As of March 2025, Perplexity AI reported over 1 million monthly active users.

Apple's Strategic Considerations

Apple's interest in Perplexity AI aligns with its strategy to enhance its artificial intelligence capabilities and reduce reliance on external partners like Google for search functionalities. The potential acquisition would mark Apple's largest to date, surpassing its $3 billion purchase of Beats in 2014.

The discussions come amid increasing scrutiny of Apple's partnership with Google, which makes Google the default search engine on Apple devices and reportedly generates approximately $20 billion annually for Apple. This partnership is currently under examination by U.S. antitrust regulators.

Industry Context and Competitive Landscape

The AI search market is becoming increasingly competitive, with major tech companies investing heavily in AI-driven search technologies. Meta Platforms Inc. previously attempted to acquire Perplexity AI but shifted its focus to investing in Scale AI. Additionally, Samsung Electronics is reportedly in discussions with Perplexity AI for a partnership, which could complicate any potential deal with Apple.

Legal and Ethical Considerations

Perplexity AI has faced legal challenges regarding content usage. The BBC has threatened legal action against the startup, alleging unauthorized use of its content to train AI models. The BBC demands cessation of content scraping, deletion of retained content, and a compensation proposal.

Potential Implications

• Technological Advancement: Acquiring Perplexity AI could accelerate Apple's development of AI-driven search capabilities, potentially enhancing user experience across its ecosystem.

• Market Positioning: This move could position Apple as a more formidable competitor in the AI search market, challenging incumbents like Google and emerging players.

• Regulatory Scrutiny: A significant acquisition in the AI space may attract regulatory attention, especially given ongoing antitrust investigations into major tech companies.

As of now, these discussions are preliminary, with no formal offer made, and Perplexity AI has stated it is unaware of any current or future acquisition talks.