Apple executives explore acquiring AI startup Perplexity to boost AI capabilities

Apple Inc. executives have held internal discussions about potentially bidding for Perplexity AI, a San Francisco-based artificial intelligence startup valued at $14 billion, as part of efforts to strengthen its AI capabilities. According to sources familiar with the matter, Adrian Perica, Apple’s head of mergers and acquisitions, alongside services chief Eddy Cue and top AI decision-makers, has explored the acquisition to bolster Apple’s generative AI offerings and reduce reliance on its $20 billion annual Google search deal, which faces scrutiny in a U.S. Department of Justice antitrust case. The talks, still in early stages, have not involved Perplexity’s management, and no formal offer has been made, with Perplexity stating it has “no knowledge of any current or future M&A discussions.” Perplexity, founded in 2022 by Aravind Srinivas and others, offers an AI-powered search engine that provides real-time, conversational answers, competing with OpenAI’s ChatGPT and Google’s Gemini. The potential acquisition, which would be Apple’s largest, surpassing its $3 billion Beats purchase in 2014, could enhance Siri and Safari with AI-driven search tools. The move follows Meta’s failed attempt to acquire Perplexity earlier this year, with Meta instead investing $14.3 billion in Scale AI. Apple’s interest aligns with its broader strategy to catch up in generative AI, where it has lagged rivals, with a delayed Siri upgrade now slated for spring 2026.