Apple Inc. executives have held inner discussions about doubtlessly bidding for synthetic intelligence startup Perplexity AI, searching for to deal with 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, based on folks with data of the matter. The discussions are at an early stage and should not result in a proposal, stated the folks, 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 gadgets, generates roughly $20 billion a yr for Apple — and is now beneath menace from US antitrust enforcers.
To this point, 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 have no knowledge of any current or future M&A discussions involving Perplexity,” the AI startup stated in a press release. Apple declined to remark.
Learn Extra: Meta Mentioned Shopping for Perplexity Earlier than Investing in Scale AI
The Perplexity service offers real-time solutions to questions utilizing the newest data from the online. If Apple have been to interact in talks to purchase the startup, such a transfer probably 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 should be unwound.
Google shares reversed features and fell almost 1% in late buying and selling after Bloomberg reported on Apple’s Perplexity discussions.
Perplexity not too long ago accomplished an funding spherical that valued it at $14 billion. A deal wherever close to that stage could be the biggest acquisition in Apple’s historical past. The corporate’s greatest transaction till now stays the $3 billion takeover of Beats in 2014 — although Apple made newer billion-dollar offers for Intel Corp.’s modem unit and a stake in Chinese language ride-sharing firm DiDi.
After Meta failed to achieve 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 crew, which is able to now embrace Scale co-founder Alexandr Wang.
Apple and Meta have been waging a broader battle for expertise. Meta not too long ago 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 influence him to hitch it as a substitute.
In 2013, Gross offered a startup named Cue to Apple. That buy helped type the idea of some early AI options in iOS, the working system for the iPhone. And certainly one of Gross’ Cue co-founders, Robby Walker, oversaw the Siri voice assistant till this yr. Walker is now main an Apple undertaking dubbed Data with the purpose 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 Govt 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 gradual 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 embrace stay 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 identified model within the AI house and a shopper product. A deal might additionally doubtlessly help with future recruiting efforts.
Apple has additionally mentioned an alternate plan: teaming up with Perplexity as a substitute of shopping for it. A partnership would contain including Perplexity as an AI search engine choice in Apple’s Safari internet browser and integrating it into Siri.
Apple has met a number of occasions in latest months with Perplexity, and its AI crew has been actively evaluating the know-how — an indication that it’s a minimum of 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 greatest competitor in smartphones, and AI options have change into a vital new area for the 2 rivals.
In its assertion, Perplexity stated it shouldn’t be stunning that prime producers wish to supply the “best search and more accurate AI for their users.”
“That’s Perplexity,” the startup stated.
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 advised jurors that the business is shifting away from customary web searches to AI instruments. He outlined a situation through which AI search engines like google might rapidly supersede Google’s present providing.
“We’ve been pretty impressed with what Perplexity has done, so we’ve started some discussions with them about what they’re doing,” he stated.