Apple’s Massive AI Deal Could Stump Google and Rivals
▼ Summary
– Apple is considering acquiring AI startup Perplexity, though discussions are still in early stages, according to Bloomberg.
– Perplexity, valued at $14 billion, would be Apple’s most expensive acquisition yet if the deal proceeds.
– Apple plans to integrate AI features into Safari to compete with Google’s AI search advancements, potentially threatening Google’s $20 billion annual deal as iPhone’s default search engine.
– Apple has lagged in AI compared to rivals, with delayed Siri updates and tepid reception to Vision Pro, making Perplexity a strategic boost.
– Perplexity, founded in 2022, offers AI-powered search with summarized responses and has attracted investors like Nvidia and Jeff Bezos, with growing user adoption.
Apple is reportedly considering a major acquisition that could shake up the AI landscape and challenge Google’s dominance in search. According to sources familiar with the matter, discussions are underway about potentially purchasing Perplexity, an AI-powered search startup valued at approximately $14 billion. While talks remain preliminary, such a deal would represent Apple’s largest acquisition to date.
Perplexity has quickly emerged as a formidable player in AI-driven search, offering conversational responses powered by large language models instead of traditional link-based results. The company’s rapid growth has attracted investments from tech heavyweights like Nvidia and Jeff Bezos, with user engagement reportedly increasing by more than 20% each month.
For Apple, acquiring Perplexity could be a strategic move to bolster its AI capabilities and reduce reliance on Google. Currently, Google pays Apple an estimated $20 billion annually to remain the default search engine on iPhones, an arrangement facing increasing regulatory scrutiny. By integrating Perplexity’s technology into Safari, Apple could introduce AI-powered search features that disrupt Google’s stronghold.
The potential acquisition highlights Apple’s urgency to catch up in the AI race. While competitors like Microsoft and Google have aggressively invested in AI, Apple has lagged behind, focusing instead on hardware like the Vision Pro headset. Despite unveiling Apple Intelligence, its on-device AI framework, many promised features remain delayed or underwhelming. Bringing Perplexity into the fold could accelerate Apple’s AI ambitions and provide a more compelling alternative to existing chatbots and search tools.
Perplexity’s rise mirrors the broader shift toward generative AI in tech. Founded shortly after ChatGPT’s debut, the startup has differentiated itself by delivering concise, sourced answers rather than conventional search results. Its success has even reportedly drawn interest from Meta before the social media giant opted to invest in Scale AI instead.
If Apple moves forward with the deal, it could mark a turning point in the battle for AI supremacy. With Perplexity’s advanced search capabilities and growing user base, Apple may finally gain the edge it needs to compete with Google and other AI leaders. For now, both companies remain tight-lipped, leaving industry watchers to speculate on what could become one of the most significant tech acquisitions of the year.
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(Source: ZDNET)
