Apple Inc. executives have held inner discussions about doubtlessly bidding for synthetic intelligence startup Perplexity AI, searching for to handle the necessity for extra AI expertise and know-how.
Adrian Perica, the corporate’s head of mergers and acquisitions, has weighed the concept with companies chief Eddy Cue and prime AI decision-makers, in keeping with individuals with data of the matter. The discussions are at an early stage and should not result in a proposal, mentioned the individuals, who requested to not be recognized as a result of the matter is personal.
Such a deal would assist Apple develop an AI-based search engine, a part of efforts to deal with the potential lack of a longstanding association with Google. That partnership, which entails making Google the default browser on units, generates roughly $20 billion a yr for Apple — and is now beneath risk from US antitrust enforcers.
Up to now, Apple executives haven’t mentioned a bid with Perplexity administration. Bloomberg Information reported earlier Friday that Meta Platforms Inc. tried to purchase Perplexity earlier this yr.
“We’ve no data of any present or future M&A discussions involving Perplexity,” the AI startup mentioned in a press release. Apple declined to remark.
Learn Extra: Meta Mentioned Shopping for Perplexity Earlier than Investing in Scale AI
The Perplexity service supplies real-time solutions to questions utilizing the newest info from the net. If Apple have been to interact in talks to purchase the startup, such a transfer seemingly wouldn’t occur till a call is made within the Google antitrust trial. That’s when Apple would know whether or not its profitable Google settlement might need to be unwound.
Google shares reversed features and fell almost 1% in late buying and selling after Bloomberg reported on Apple’s Perplexity discussions.
Perplexity just lately accomplished an funding spherical that valued it at $14 billion. A deal anyplace close to that degree could be the most important acquisition in Apple’s historical past. The corporate’s largest transaction till now stays the $3 billion takeover of Beats in 2014 — although Apple made more moderen billion-dollar offers for Intel Corp.’s modem unit and a stake in Chinese language ride-sharing firm DiDi.
After Meta failed to succeed in an settlement with Perplexity, it purchased a 49% slice of Scale AI for $14.3 billion. That deal is a part of Meta’s makes an attempt to create a so-called superintelligence AI workforce, which can now embody Scale co-founder Alexandr Wang.
Apple and Meta have been waging a broader combat for expertise. Meta just lately engaged in discussions to rent Daniel Gross, the co-founder of AI firm Secure Superintelligence Inc. Whereas the discussions between Meta and Gross are superior, Apple has tried to steer him to affix it as a substitute.
In 2013, Gross bought a startup named Cue to Apple. That buy helped type the premise of some early AI options in iOS, the working system for the iPhone. And one in every of Gross’ Cue co-founders, Robby Walker, oversaw the Siri voice assistant till this yr. Walker is now main an Apple venture dubbed Data with the aim of making a rival to OpenAI’s ChatGPT that may use information from the open internet.
Gross didn’t instantly reply to a request for remark.
Perica and Eddy Cue, who each report back to Apple Chief Government Officer Tim Cook dinner, are main the AI acquisition and recruiting efforts.
The hunt for expertise is a part of a bid to catch up in generative AI. The corporate was sluggish to ship its Apple Intelligence platform and nonetheless lags rivals in key options. A revamped Siri was delayed indefinitely this yr, with the corporate now aiming to have it prepared by subsequent spring.
Learn Extra: Apple Targets Spring 2026 for Launch of Delayed Siri AI Improve
Apple unveiled a comparatively meager slate of latest AI enhancements at its Worldwide Builders Convention earlier this month. The most recent options embody reside translation capabilities and a deeper partnership with OpenAI on ChatGPT-based picture era.
Shopping for Perplexity would give Apple an infusion of AI expertise, a recognized model within the AI area and a client product. A deal might additionally doubtlessly help with future recruiting efforts.
Apple has additionally mentioned another plan: teaming up with Perplexity as a substitute of shopping for it. A partnership would contain including Perplexity as an AI search engine possibility in Apple’s Safari internet browser and integrating it into Siri.
Apple has met a number of occasions in current months with Perplexity, and its AI workforce has been actively evaluating the know-how — an indication that it’s at the least contemplating an in depth relationship with the corporate.
One main snag within the course of might be an in-the-works deal between Perplexity and Samsung Electronics Co., which plans to announce a deep partnership with the startup. Samsung is Apple’s largest competitor in smartphones, and AI options have turn into a essential new enviornment for the 2 rivals.
In its assertion, Perplexity mentioned it shouldn’t be shocking that prime producers need to supply the “finest search and extra correct AI for his or her customers.”
“That’s Perplexity,” the startup mentioned.
Learn Extra: Samsung Nears Huge-Ranging Deal With Perplexity for AI Options
Cue, whose division contains Apple’s streaming companies and iCloud, beforehand expressed an curiosity in Perplexity. Whereas testifying on the Google antitrust trial in Might, he instructed jurors that the trade is shifting away from normal web searches to AI instruments. He outlined a state of affairs by which AI search engines like google and yahoo might rapidly supersede Google’s present providing.
“We’ve been fairly impressed with what Perplexity has executed, so we’ve began some discussions with them about what they’re doing,” he mentioned.
