Apple Explores Potential Acquisition of AI Startup Perplexity Amid Growing Competition

Key Takeaways:

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1. Apple executives are discussing a potential bid for Perplexity AI, valued at $14 billion*, to enhance its AI capabilities.
2. The acquisition could address the potential loss of Apple’s $20 billion/year* partnership with Google, which is under antitrust scrutiny.
3. Apple is also considering an alternative partnership with Perplexity to integrate its AI search engine into Safari and Siri.
4. Samsung is nearing a partnership with Perplexity, while Meta’s earlier $14.3 billion* bid for Scale AI highlights competitive pressure.

What Happened?

Apple is in early discussions about acquiring Perplexity AI, a startup valued at $14 billion*. The acquisition would surpass Apple’s largest deal to date, the $3 billion* Beats acquisition in 2014. Apple’s $20 billion/year* partnership with Google, which makes Google the default search engine on Apple devices, is under threat due to U.S. antitrust investigations.

Samsung, Apple’s biggest smartphone rival, is close to announcing a partnership with Perplexity, adding competitive pressure. Meta previously attempted to acquire Perplexity but instead invested $14.3 billion* in Scale AI.

Why It Matters?

Acquiring Perplexity would provide Apple with significant AI talent and technology, helping it compete in the generative AI race. The deal could reduce Apple’s reliance on Google and strengthen its AI-based search engine capabilities. Samsung’s potential partnership with Perplexity and Meta’s earlier interest highlight the competitive landscape in the AI space. The $14 billion* valuation and the outcome of the Google antitrust trial could influence Apple’s decision.

What’s Next?

Apple is likely to wait for the resolution of the Google antitrust trial before making a formal bid. The company may continue evaluating Perplexity’s technology and exploring partnership opportunities. Samsung’s potential partnership with Perplexity could accelerate Apple’s decision-making process. The outcome of this deal could shape the future of AI-powered search and Apple’s position in the AI ecosystem.