As part of its effort to keep up with the rapid development of the artificial intelligence field and to establish an independent infrastructure, Apple is considering the possibility of acquiring the AI company Perplexity AI (Perplexity) — according to a report by Bloomberg. According to the report, the potential acquisition is being considered both out of a desire to acquire talent in the AI field and to develop a new search engine based on advanced technology in the domain. The idea was raised in internal discussions at Apple's top executive level, with Adrian Perica, the company’s Vice President of Mergers and Acquisitions, discussing it with Eddy Cue — responsible for services — and with other senior executives leading Apple’s AI efforts. However, it is still an early stage: So far, no official approach has been made by Apple to Perplexity, and the internal discussions may not develop into an actual offer.
At the same time, according to the report, an alternative of cooperation between the companies is also being considered, instead of a full acquisition. In any case, Apple’s goal is to utilize Perplexity's technology to develop an advanced AI search engine, with possible integration into the operating system and the Siri voice assistant.
According to Bloomberg, Apple representatives have held several meetings with Perplexity in recent months. In one of them, the possibility was raised of integrating the company’s search engine into the Safari browser — a matter that also came up during Cue’s testimony in the antitrust trial against Google. Under the current agreement between Google and Apple, Google’s search engine is defined as the default on the iPhone, and the agreement generates massive revenues for Apple — around NIS 18 billion in 2021 alone.
If regulators require Apple to end its cooperation with Google, the acquisition of Perplexity would become an even more significant strategic move. In addition, it could allow Apple to recruit critical AI talent, an area in which it is struggling to keep up with companies like Meta. According to the report, Apple is currently directly competing with Meta in an effort to recruit Daniel Gross, founder of Safe Superintelligence Inc.
At present, one of the most prominent signs of Apple’s need to bolster its AI efforts is the delay in launching an upgraded version of Siri — a component that was supposed to be a central part of the new “Apple Intelligence” system that the company recently introduced. The delay apparently stemmed from a lack of adequate technology or suitable personnel.
If and when Apple makes an official decision to enter negotiations or submit a purchase offer for Perplexity, it would be a dramatic move that could reshape the digital search landscape and break the duopoly of Google and Microsoft in the AI-powered search engine market.