Got a craving for some industry-leading AI? Why make it when you can just buy it? Rumors suggest that Apple is in the midst of acquisition talks with regard to Perplexity AI. The AI company recently came out with a massive valuation of $14 billion after a funding round in May, and has since grown in its identity as a real threat to the AI market and the dominance Google currently enjoys.
According to Bloomberg, Adrian Perica, the head of acquisitions and mergers at Apple, has initiated discussions with the heads of the company over the possibility of acquiring Perplexity AI. There is no evidence that Apple has directly spoken to the AI company or put in a formal bid just yet, but it does appear that Apple is seriously considering buying Perplexity AI. This could be just what Apple needs to skip, hop, and jump straight to the top of the AI business, but the acquisition will not be free of competition.
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Apple’s Perplexity AI Acquisition Talks Are Only an Internal Matter So Far
Perplexity AI, an AI-powered search engine service, emerged on the scene in 2022 and has since evolved into a trusted name in the AI industry. The service provides conversational answers to tricky questions posed by users, citing reliable sources to back up its results. While users have started using ChatGPT for their searches and Google has embedded AI into its search services, Perplexity AI’s performance as a search tool is perhaps the most advanced.
The company recently revealed that it was handling 780 million queries every month, which is extremely impressive for any company, but especially for one that isn’t as well-known as some of its competitors. The business is expected to grow significantly in the coming years.
The recent developments to its Comet browser have been impressive, and it is now planning to open up agentic search to Windows users, slowly expanding user access to its services. The company is also reportedly looking into a similar expansion for Android users, giving them an alternative to the typical browsers like Chrome and Opera. The AI tool has grown more advanced with each update, and Apple is reportedly considering an AI startup acquisition to make the most of its services.
Apple’s Acquisition of Perplexity AI Could Be Revolutionary
Apple’s acquisition of Perplexity AI could be a game-changer for the company, as it has evidently struggled with making advancements in artificial intelligence. While the company was able to introduce Apple Intelligence last year, its capabilities have been underwhelming so far. Apple promised some AI-supported advancements to Siri as well, but has struggled to bring the assistant out as planned.
AI Siri is expected to arrive next year, but if Apple acquired Perplexity, it could speed up the process by employing the AI experts from Perplexity to work on improving its internal advancements. While reports suggest that the companies have met for some discussions, there is currently no evidence that talks have begun between the two organizations. Apple’s strategy to acquire the AI startup is only an internal discussion for now.
If Apple did put in an offer, it would have to spend over $14 billion on the acquisitions. Apple’s deal to make Google the preferred search engine on its products is currently in jeopardy due to the ongoing antitrust trial against Google, so it’s likely that Apple will wait to see the results of the case before putting in any offers.
Alternatively, Apple is also considering its AI expansion as a partnership with Perplexity rather than looking at it as an acquisition. This would be much easier on the company’s coffers; however, it would lose out on the opportunity to internalize the expertise of the team working at the AI company.
Apple Considers Buying Perplexity AI, but so Did Meta
Apple AI expansion with Perplexity could be a big deal for the future of the company, and unsurprisingly, it isn’t the only company that has considered this avenue of expansion. Meta reportedly approached the firm with a takeover bid shortly before it made a $14.3 billion investment in Scale AI. The Facebook parent now holds a 49% stake in Scale AI, and the young CEO of the firm, along with some of his employees, will soon join Meta.
Meta has been aggressive in its attempt to expand its AI businesses, but its own attempts have not been met with great success. As a result, the company has begun looking at other avenues to grow its AI business, including looking into the acquisition of Safe Superintelligence and Perplexity AI. OpenAI CEO Sam Altman also revealed that Meta made some substantial offers to try and poach some of its employees, but was unsuccessful in drawing away the top talent from OpenAI.
If Meta and Apple both see the AI company as a valuable investment, it is likely that other tech giants are considering the possibility as well. Perplexity AI has been repeatedly referred to as the Google killer, and while we need more evidence to see it as such, it’s apparent that tech businesses are able to see this big picture.
An Apple-Perplexity AI Partnership Is a While Away
If Apple makes an AI startup acquisition, is Perplexity AI truly its best bet? Skeptics have questioned Perplexity’s $14 billion valuation and whether the company is doing anything groundbreaking. Its identity as the “Google killer” is currently unfounded, and many critics suggest that the AI tool isn’t performing any exceptional feats with AI. The company has been at the center of multiple allegations of plagiarism as well, but this is true for most AI tools on the market right now.
If Apple does consider an acquisition of Perplexity AI, the expertise alone would be extremely beneficial for the company. However, it would take a while for the partnership to solidify and lead to concrete results. For now, we expect to see Apple work on its AI services on its own with greater fervor.
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