Apple Explores Acquisition of AI Startup Perplexity AI

Apple Inc. is reportedly evaluating the acquisition of Perplexity AI, a rapidly growing startup specializing in artificial intelligence-driven search technologies. According to sources familiar with the matter, internal discussions have taken place among senior Apple executives, including Adrian Perica, head of mergers and acquisitions, and Eddy Cue, services chief. These talks are preliminary, and no formal offer has been extended to Perplexity's management.

Perplexity AI, founded in 2022 by Aravind Srinivas, Denis Yarats, Johnny Ho, and Andy Konwinski, has quickly emerged as a significant player in the AI search engine market. The company offers real-time, AI-powered search capabilities, positioning itself as a competitor to traditional search engines like Google. As of June 2025, Perplexity was valued at approximately $14 billion following a recent funding round led by venture capital firm Accel. The startup has experienced remarkable growth, with its valuation increasing from $1 billion in April 2024 to $9 billion by December 2024, and reaching $14 billion by mid-2025.

Apple's interest in Perplexity aligns with its broader strategy to enhance its artificial intelligence capabilities and reduce reliance on external partners like Google for search functionalities. Integrating Perplexity's technology could modernize tools such as Siri by incorporating more advanced and contextual search capabilities. This move would also position Apple more competitively against rivals like Meta Platforms and Google, who are investing heavily in AI technologies.

Notably, Meta Platforms also reportedly approached Perplexity AI earlier in 2025 regarding a potential acquisition, but no deal materialized. This indicates a broader industry trend where major tech companies are seeking to bolster their AI capabilities through strategic acquisitions.

Perplexity AI has demonstrated impressive financial performance, with annualized revenue growing from $35 million in August 2024 to $150 million by July 2025. The company serves approximately 30 million users and generates income through subscriptions, advertising, and e-commerce.

In July 2025, Perplexity launched Comet, an AI-powered web browser designed to support automated search, task handling, and summarization. The browser integrates the company's real-time AI engine into a full browsing experience, positioning it as an extension of its core search functionality. Comet is currently available to premium subscribers and is being tested in enterprise environments.

Perplexity AI is currently facing multiple legal challenges related to alleged copyright infringements, unauthorized content scraping, and trademark disputes. Major media organizations, including the BBC, Dow Jones, and The New York Times, have accused the company of using their content without permission to train its AI models and generate responses.

The potential acquisition of Perplexity AI by Apple could have significant societal implications. It may lead to enhanced AI-driven search capabilities, offering users more accurate and contextually relevant information. However, it also raises concerns about data privacy, content ownership, and the concentration of AI technologies within a few major corporations.

As of July 31, 2025, Apple Inc. (AAPL) shares are trading at $208.76, reflecting a slight decrease of 0.00139% from the previous close. The company's market capitalization stands at approximately $3.28 trillion.

While the discussions between Apple and Perplexity AI are still in the early stages, the potential acquisition underscores the intensifying competition among tech giants to secure a leading position in the rapidly evolving AI landscape.