Apple-Perplexity AI Acquisition Talks

Apple-Perplexity AI Acquisition Talks

• Apple executives, including VP Adrian Perica and SVP Eddy Cue, are reportedly in internal discussions about acquiring Perplexity, a startup that excels in AI-powered search and synthesized answers.

• The move is aimed at boosting Apple's AI capabilities, particularly integrating smart search into Safari and Siri, and reducing dependence on Google's dominant search deal.

• The acquisition is seen as a way to bridge the AI gap, as Apple has been behind competitors like Google and OpenAI in generative AI progress.

• Perplexity's strength lies in its AI-powered search and synthesized answers, outperforming Siri and ChatGPT in some benchmarks. It's valued at around $14 billion and recently closed a ~$500 million funding round.

• The acquisition could enable Apple to embed advanced AI search directly into Safari, Siri, and Apple Intelligence, potentially faster and more seamlessly than partnerships.

• Apple is still in the exploratory phase of discussions with Perplexity’s management, but the acquisition could be Apple’s largest acquisition to date.

• The acquisition could position Apple to compete in AI with its own hardware-software synergy, rather than relying solely on external partnerships.