Apple Weighs Acquisition of Perplexity AI to Boost AI-Powered Search Ambitions

Apple Weighs Acquisition of Perplexity AI to Boost AI-Powered Search Ambitions | CIO Women Magazine

Apple is reportedly exploring the potential acquisition of Perplexity AI, a move that could mark a significant step forward in its pursuit of artificial intelligence-driven technologies. According to Bloomberg, senior Apple executives, including Adrian Perica, head of mergers and acquisitions, and services SVP Eddy Cue, have discussed the strategic importance of acquiring Perplexity AI. The aim is twofold: to bolster Apple’s AI talent pool and to develop a proprietary AI-powered search engine.

Although internal discussions remain at a preliminary stage and no formal offer has been extended to Perplexity AI, the tech giant appears seriously interested in the company’s technology and capabilities. The internal deliberations indicate that Apple is increasingly viewing AI as a vital component of its future services, especially amid growing competition in the space.

Alternative Paths: Partnership or Full Acquisition

In addition to a possible acquisition, Apple has reportedly considered a strategic partnership with Perplexity AI. The objective would be to integrate Perplexity’s advanced AI search technology into Apple’s ecosystem, including its virtual assistant Siri. Several meetings between the two companies have already taken place in recent months, though a definitive agreement has yet to materialize.

This isn’t the first time Apple has explored collaboration with Perplexity. During his testimony in Google’s ongoing antitrust trial concerning its search dominance, Eddy Cue revealed that Apple had previously discussed integrating Perplexity’s services into the Safari browser. Despite these talks, Cue made no definitive commitments, keeping Apple’s plans under wraps.

Apple’s interest in Perplexity reflects broader industry dynamics. As the company looks to reduce its reliance on Google — from whom it reportedly received $18 billion in 2021 alone for default search engine status — having its search infrastructure, powered by AI, could offer Apple a long-term strategic advantage.

Strategic Timing Amid AI Talent Wars and Regulatory Pressure

Apple’s interest in acquiring Perplexity AI comes at a time when regulatory scrutiny could impact its longstanding partnership with Google. Should regulators demand an end to that lucrative arrangement, owning or partnering with a company like Perplexity would allow Apple to swiftly pivot toward an independent, AI-based search solution. This could position the company as a formidable new player in the search engine space.

Moreover, Apple has been actively seeking AI talent to stay competitive with other tech giants like Meta. Bloomberg reports that Apple is competing with Meta to recruit AI expert Daniel Gross, founder of Safe Superintelligence Inc. Internally, the company has also faced delays in delivering AI-driven features, such as a revamped version of Siri that was central to its Apple Intelligence rollout.

Acquiring Perplexity could address these challenges by bringing in both advanced AI capabilities and top-tier talent, ultimately enabling Apple to accelerate its development in the increasingly competitive AI landscape.

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