Apple Reportedly Considering Acquisition of Perplexity AI

Apple Inc. is reportedly in discussions regarding a potential acquisition of Perplexity AI, a company recognized for its advancements in artificial intelligence, particularly in search technology. This move comes as Apple faces challenges in enhancing its own AI capabilities and addressing delays in product updates, notably for its Siri assistant.

Recent reports suggest that Apple executives are exploring a partnership with Perplexity, which could provide the tech giant with the expertise it currently lacks in the rapidly evolving AI landscape. Sources familiar with the matter, including Bloomberg journalist Mark Gurman, indicate that Apple's Adrian Perica and Eddy Cue are involved in the negotiations, which are still in preliminary stages and have not yet led to a formal offer.

Perplexity AI has gained recognition for developing a sophisticated search engine and is considered a leader in AI technology. The company's valuation has reportedly reached approximately $14 billion following its latest funding round. If finalized, an acquisition would mark Apple's largest purchase to date, surpassing its acquisition of Beats Electronics in 2014 for around $3 billion.

Additionally, Apple's interest in Perplexity may stem from ongoing legal challenges faced by Google. The U.S. Department of Justice has initiated an antitrust investigation into Google's dominance in the search engine market, which could lead to significant changes in the industry. Currently, Google pays Apple around $20 billion annually to remain the default search engine on Apple devices, a relationship that could be affected by potential regulatory outcomes.

As Apple navigates these challenges, the integration of Perplexity's technology could not only enhance its product offerings but also provide a strategic advantage in maintaining independence from Google's powerful search capabilities. Both Apple and Perplexity have not publicly commented on the ongoing discussions, leaving the future of this potential partnership uncertain.