New Delhi: Apple Inc. is weighing a potential bid for Arvind Srinivas Led Perplexity AI, an artificial intelligence startup rapidly gaining attention for its conversational search technology. According to sources familiar with the matter, Apple’s head of mergers and acquisitions, Adrian Perica, has discussed the idea with services chief Eddy Cue and senior AI leaders. The talks remain preliminary, and Apple has yet to approach Perplexity’s management directly.
The move comes as Apple seeks to bolster its AI capabilities and reduce its reliance on Google, which currently pays Apple an estimated $20 billion annually to remain the default search engine on its devices. That lucrative partnership is now under scrutiny by U.S. antitrust regulators, prompting Apple to explore alternative search solutions. Acquiring Perplexity could help Apple develop its own AI-driven search engine, positioning the company for a future where its arrangement with Google may be at risk.
Perplexity AI, recently valued at $14 billion after a fresh funding round, offers a service that delivers real-time answers to user queries by drawing from the latest web data. A deal at that valuation would mark the largest acquisition in Apple’s history, far surpassing its $3 billion purchase of Beats in 2014.
Apple is not alone in its interest. Earlier this year, Meta Platforms Inc. attempted to acquire Perplexity but was unsuccessful. Meta subsequently invested $14.3 billion in Scale AI, further intensifying the race among tech giants for advanced AI talent and technology.
Beyond acquisition, Apple is also considering a strategic partnership with Perplexity. Such an arrangement could see Perplexity’s AI search engine integrated into Safari or even Siri, Apple’s digital assistant. Sources indicate that Apple’s AI team has met with Perplexity multiple times in recent months to evaluate its technology, signaling serious interest in collaboration.
However, Apple may face competition from Samsung, which is reportedly close to announcing a significant partnership with Perplexity. Given Samsung’s status as Apple’s chief rival in the smartphone market, such a deal could complicate Apple’s ambitions.
Perplexity, for its part, has downplayed acquisition rumors, stating it is unsurprising that leading device makers are interested in offering the best AI search experiences for their users, but denying knowledge of any active merger discussions.
As Apple works to catch up with rivals in the generative AI space, the company’s leadership is intensifying efforts to recruit top talent and explore major deals. The outcome of the ongoing Google antitrust trial may ultimately determine whether Apple pursues an acquisition or partnership with Perplexity, as the company prepares for a possible shift in its search strategy.
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