Apple Inc. executives have held inside discussions about probably bidding for synthetic intelligence startup Perplexity AI, in search of to handle the necessity for extra AI expertise and know-how.
Adrian Perica, the corporate’s head of mergers and acquisitions, has weighed the thought with companies chief Eddy Cue and prime AI decision-makers, in accordance with individuals with data of the matter. The discussions are at an early stage and should not result in a suggestion, stated the individuals, who requested to not be recognized as a result of the matter is personal.
Such a deal would assist Apple develop an AI-based search engine, a part of efforts to deal with the potential lack of a longstanding association with Google. That partnership, which includes making Google the default browser on gadgets, generates roughly $20 billion a 12 months for Apple — and is now below risk from US antitrust enforcers.
Up to now, Apple executives haven’t mentioned a bid with Perplexity administration. Bloomberg Information reported earlier Friday that Meta Platforms Inc. tried to purchase Perplexity earlier this 12 months.
“We now have no data of any present or future M&A discussions involving Perplexity,” the AI startup stated in an announcement. Apple declined to remark.
Learn Extra: Meta Mentioned Shopping for Perplexity Earlier than Investing in Scale AI
The Perplexity service supplies real-time solutions to questions utilizing the most recent info from the net. If Apple had been to interact in talks to purchase the startup, such a transfer probably wouldn’t occur till a choice is made within the Google antitrust trial. That’s when Apple would know whether or not its profitable Google settlement could must be unwound.
Google shares reversed positive factors and fell almost 1% in late buying and selling after Bloomberg reported on Apple’s Perplexity discussions.
Perplexity lately accomplished an funding spherical that valued it at $14 billion. A deal anyplace close to that degree could be the most important acquisition in Apple’s historical past. The corporate’s greatest transaction till now stays the $3 billion takeover of Beats in 2014 — although Apple made more moderen billion-dollar offers for Intel Corp.’s modem unit and a stake in Chinese language ride-sharing firm DiDi.
After Meta failed to succeed in an settlement with Perplexity, it purchased a 49% slice of Scale AI for $14.3 billion. That deal is a part of Meta’s makes an attempt to create a so-called superintelligence AI workforce, which is able to now embody Scale co-founder Alexandr Wang.
Apple and Meta have been waging a broader combat for expertise. Meta lately engaged in discussions to rent Daniel Gross, the co-founder of AI firm Protected Superintelligence Inc. Whereas the discussions between Meta and Gross are superior, Apple has tried to steer him to hitch it as an alternative.
In 2013, Gross bought a startup named Cue to Apple. That buy helped kind the idea of some early AI options in iOS, the working system for the iPhone. And certainly one of Gross’ Cue co-founders, Robby Walker, oversaw the Siri voice assistant till this 12 months. Walker is now main an Apple venture dubbed Data with the purpose of making a rival to OpenAI’s ChatGPT that may use knowledge from the open net.
Gross didn’t instantly reply to a request for remark.
Perica and Eddy Cue, who each report back to Apple Chief Government Officer Tim Prepare dinner, are main the AI acquisition and recruiting efforts.
The hunt for expertise is a part of a bid to catch up in generative AI. The corporate was gradual to ship its Apple Intelligence platform and nonetheless lags rivals in key options. A revamped Siri was delayed indefinitely this 12 months, with the corporate now aiming to have it prepared by subsequent spring.
Learn Extra: Apple Targets Spring 2026 for Launch of Delayed Siri AI Improve
Apple unveiled a comparatively meager slate of recent AI enhancements at its Worldwide Builders Convention earlier this month. The most recent options embody stay translation capabilities and a deeper partnership with OpenAI on ChatGPT-based picture era.
Shopping for Perplexity would give Apple an infusion of AI expertise, a recognized model within the AI house and a client product. A deal may additionally probably help with future recruiting efforts.
Apple has additionally mentioned another plan: teaming up with Perplexity as an alternative of shopping for it. A partnership would contain including Perplexity as an AI search engine possibility in Apple’s Safari net browser and integrating it into Siri.
Apple has met a number of occasions in current months with Perplexity, and its AI workforce has been actively evaluating the know-how — an indication that it’s a minimum of contemplating a detailed relationship with the corporate.
One main snag within the course of might be an in-the-works deal between Perplexity and Samsung Electronics Co., which plans to announce a deep partnership with the startup. Samsung is Apple’s greatest competitor in smartphones, and AI options have turn out to be a important new enviornment for the 2 rivals.
In its assertion, Perplexity stated it shouldn’t be shocking that prime producers wish to provide the “finest search and extra correct AI for his or her customers.”
“That’s Perplexity,” the startup stated.
Learn Extra: Samsung Nears Huge-Ranging Deal With Perplexity for AI Options
Cue, whose division contains Apple’s streaming companies and iCloud, beforehand expressed an curiosity in Perplexity. Whereas testifying on the Google antitrust trial in Might, he instructed jurors that the business is shifting away from commonplace web searches to AI instruments. He outlined a situation through which AI search engines like google may rapidly supersede Google’s present providing.
“We’ve been fairly impressed with what Perplexity has achieved, so we’ve began some discussions with them about what they’re doing,” he stated.
