Apple executives reportedly discussed acquisition of AI startup Perplexity

Apple has reportedly held early-stage internal discussions about a potential bid for artificial intelligence search startup Perplexity, according to Bloomberg News.

The talks, which have not yet advanced to formal negotiations with Perplexity’s management, reflect Apple’s growing interest in bolstering its AI capabilities amid a broader industry shift.

Perplexity, a fast-growing AI search engine startup valued at approximately $14 billion following its recent funding round, is attracting the attention of several tech giants. The Bloomberg report also noted that Meta Platforms attempted to acquire the startup earlier this year but was unsuccessful.

Responding to a request for comment from Reuters, Perplexity stated, “We have no knowledge of any current or future M&A discussions involving Perplexity.” Apple has not issued a public comment on the report.

The move would mark Apple’s most significant acquisition to date if it materializes. Adrian Perica, Apple’s Vice President of Corporate Development, is said to have explored the possibility alongside senior executives, including services chief Eddy Cue and other AI decision-makers within the company.

Sources indicate that Apple is considering integrating Perplexity’s AI-driven search tools into its Safari web browser, potentially signaling a shift away from its lucrative search partnership with Alphabet.

Currently, Google pays billions annually to remain the default search engine on Apple devices – a practice that has drawn antitrust scrutiny from the U.S. Department of Justice, which is pushing for remedies to curb Google’s dominance in online search.

Apple’s growing focus on generative AI aligns with broader industry trends. Tech giants such as Meta and Microsoft have been aggressively investing in AI to remain competitive. Just last week, Meta announced a $14.8 billion investment in Scale AI and tapped its CEO Alexandr Wang to head a new superintelligence division.

Backed by Nvidia, Perplexity has emerged as a major contender in the AI search landscape. Its platform delivers concise information summaries, competing with products like OpenAI’s ChatGPT and Google’s Gemini.

While traditional search engines continue to dominate overall market share, AI-powered alternatives are rapidly gaining traction, especially among younger users seeking conversational and context-aware results.

If Apple proceeds with the acquisition, it would mark a major shift in the company’s AI strategy – and potentially disrupt the search engine status quo.