The $14B Shortcut: Why Apple Might Buy Perplexity to Stay in the AI Game
In late June 2025, reports emerged that Apple has held internal talks about potentially acquiring Perplexity AI, a startup known for its AI-driven search engine and chatbot. According to Bloomberg’s scoop (as summarized by Reuters), Apple’s M&A chief Adrian Perica and services lead Eddy Cue have discussed making a bid, and Apple executives even met with Perplexity’s team several times, though no formal offer has been made. The discussions are early-stage and might not lead to a deal – indeed, Perplexity stated it “has no knowledge of any current or future M&A discussions,” suggesting Apple hasn’t yet approached the startup directly.
What makes this rumor especially intriguing is the scale of the potential deal. Perplexity recently raised funding valuing it around $14 billion, so any acquisition near that price would mark Apple’s largest purchase ever, far eclipsing its $3B Beats acquisition in 2014. For context, Perplexity’s AI search app is considered one of the leading ChatGPT alternatives, reportedly attracting around 15 million users with its ability to answer queries conversationally using web information. It delivers summarized answers with citations, much like an AI assistant combined with a search engine.
Perplexity app, driven by voice controls - credit to techinasia.com
Apple isn’t the only tech giant interested. Meta had talks earlier in 2025 about buying Perplexity as part of Mark Zuckerberg’s aggressive AI push, although those discussions never reached a formal offer due to differences in strategy and price. Meta ultimately invested $14.8B in another AI venture (Scale AI) and hired its CEO to lead a new AI unit. Samsung was also eyeing Perplexity – the Korean company is reportedly partnering with and even planning to invest in Perplexity, aiming to make it the default AI assistant on future Galaxy phones. In fact, Samsung already offers its U.S. users free access to Perplexity Pro for a year. All of this means Apple, if it swoops in to buy Perplexity outright, could snatch a hot AI startup out from under rivals.
Apple’s AI Lag and the Competitive Landscape
Why would Apple consider a bold move like this? In a word: catch-up. Despite being a leader in many tech arenas, Apple is widely seen as lagging behind in the AI race, particularly in consumer-facing generative AI. Apple’s voice assistant Siri has stagnated and the company’s “Apple Intelligence” AI features have been relatively modest compared to the leaps made by OpenAI, Google, and Meta. At WWDC 2025, Apple had little to show for Siri improvements – a planned AI-driven Siri overhaul was delayed into 2026 for quality reasons, leaving many observers underwhelmed. In contrast, competitors have been sprinting ahead:
OpenAI (with Microsoft) – OpenAI’s ChatGPT sparked the current AI boom, showcasing advanced large language model capabilities. Microsoft quickly integrated ChatGPT and GPT-4 into Bing (as Bing Chat), Windows (the Copilot feature), and Office 365, giving millions of users AI-assisted search and productivity tools. This partnership has set a high bar for conversational AI assistance that Apple currently lacks. In fact, Apple has quietly tapped OpenAI’s tech for some features (like image editing and on-screen Q&A in iOS 17/18), underscoring that it doesn’t yet have a competitive in-house solution.
Google – Google has leveraged its AI research to launch Bard and, more recently, the powerful Gemini model. It has begun weaving generative AI into Google Search and Android. For example, Android users were first to get a feature where the Google Assistant (powered by Gemini) can understand and respond to images on your screen. Google is also the default search engine on Safari due to a lucrative deal with Apple, giving it a stronghold on iPhone users’ searches. With its deep AI talent and data, Google is seen as a front-runner – and a direct beneficiary of Apple’s AI inertia so far.
Meta (Facebook) – Meta has taken a different route by open-sourcing its large language models (LLaMA) and pouring resources into AI research. CEO Mark Zuckerberg has been aggressively recruiting AI talent and exploring acquisitions (like Perplexity) to reinvent Meta’s AI strategy. Meta’s aim is to build new AI-powered experiences (e.g. a next-gen AI assistant for its platforms). Recently, Meta hired top AI experts – including ex-OpenAI and Scale AI leaders – and formed a “superintelligence” unit with a $14B investment. In short, Meta is betting big on AI, and even though its approach (open models and integration into social products) differs from Apple’s, it underscores that all of Big Tech is all-in on AI.
Meanwhile, Apple’s slow pace has drawn criticism. Its AI features (branded Apple Intelligence) are mostly on-device, privacy-focused tweaks – nice to have, but nowhere near the conversational power or coding prowess of GPT-4, for example. The Verge notes that Apple’s AI efforts are rarely mentioned alongside those of OpenAI or Google when it comes to cutting-edge use cases. Siri, once an early pioneer in voice assistants, now often serves as a punchline for how far behind it feels (“Hey Siri, why do you still suck in 2025?” as one satirical headline quipped). Even Apple’s own marketing last year hyped new Siri features that still haven’t materialized.
From an IT leadership perspective, this lag raises strategic concerns. AI is increasingly seen as critical infrastructure – enabling smarter services, automation, and new user experiences. Apple risks missing the boat (or having to license tech from others) if it doesn’t develop competitive AI capabilities. The company is rich in device data and has custom silicon (the Neural Engine in iPhones/Macs) that could be a competitive advantage for AI, but it hasn’t yet delivered a breakthrough AI product. All of this context explains why Apple might be considering a dramatic step like acquiring Perplexity to supercharge its AI plans.
Why Perplexity? A Shortcut to AI Search and Talent
Perplexity founders Aravind Srinivas, Andy Konwinski, Denis Yarats, and Johnny Ho in 2022. Credit - techfundingnews.com
Perplexity AI represents an attractive target for several reasons:
A Proven AI Search Product: Perplexity offers a cross between a search engine and an AI assistant – it uses large language models to “comb the web to answer user queries in a conversational way,” essentially providing direct answers with source citations. It’s already one of the top AI search services, with a growing user base. By acquiring Perplexity, Apple would get a ready-made AI search engine that it could integrate into its ecosystem, rather than having to build one from scratch.
Top AI Talent and Technology: The startup’s founders and team hail from elite AI institutions (co-founder Aravind Srinivas worked at DeepMind, Google Brain, and OpenAI). They have developed proprietary techniques to deliver concise, cited answers to open-ended questions, similar to what ChatGPT or Bing Chat does. Bringing that talent in-house would bolster Apple’s relatively small AI research group. In effect, Apple would be buying an experienced AI R&D team along with the product. This could infuse fresh ideas and expertise into Apple’s own projects (like its secretive “Apple GPT” efforts).
Independence from Google: Perhaps the biggest strategic reason, as several observers note, is to reduce Apple’s reliance on Google in the search domain. Currently, Google pays Apple an estimated $20 billion per year to remain the default search engine on Safari. That arrangement is under threat – the U.S. DOJ’s antitrust case is seeking to prohibit Google’s exclusive search deals. If regulators force an end to that partnership, Apple would suddenly lose a huge revenue stream and a best-in-class search for its users. Owning Perplexity could provide a Plan B: Apple’s own AI-powered search engine on iPhones and Macs. Apple could integrate Perplexity into Safari or Spotlight search, ensuring users still get quick answers without Google – and Apple would keep more control (and potentially search ad revenue) in-house. Even if the Google deal remains, having an alternative puts Apple in a stronger negotiating position and aligns with Apple’s ethos of owning core technologies.
Accelerating Siri’s Improvement: Apple has been working on a next-gen Siri that leverages large language models (internally called “Ajax” or Apple GPT), but results have been slow. Perplexity’s tech could be directly applied to make Siri much smarter and more conversational. For example, Apple could let Siri use Perplexity’s engine to answer complex questions or perform multi-step tasks, rather than Siri’s current simplistic rule-based responses. Apple’s planned Siri revamp isn’t due until 2026, but Perplexity could fill the gap in the meantime. Even a partnership short of full acquisition could allow Siri to tap into Perplexity’s AI for answering questions. Essentially, Perplexity would give Siri “brainpower” similar to ChatGPT or Google Assistant with Gemini – something Apple has lacked. Insiders note that Apple’s recent AI delays have made it clear they need outside help to deliver new features, and Perplexity might be exactly that help.
Competitive Edge and Future Products: By integrating Perplexity’s AI, Apple could offer a differentiated, AI-rich user experience that rivals can’t easily match on iOS. This is crucial as AI becomes a selling point for devices. Right now, a consumer who values AI features might prefer a Google Pixel (for its AI camera and Assistant) or Samsung Galaxy (which is starting to bundle generative AI services) over an iPhone. Apple wants to reverse that trend. If iPhones come with a first-class AI assistant/search that’s deeply integrated, Apple can both catch up to Google/Meta and potentially leapfrog by leveraging its tight hardware-software integration. For instance, an AI that is baked into iOS could seamlessly use on-device data (with privacy protections) to give more contextual, personalized help than a generic cloud AI. Moreover, Apple has new product categories, like the upcoming Vision Pro AR headset and a rumored smart home hub, which would heavily benefit from a robust voice-AI interface. Siri in its current form wouldn’t cut it for those – but a Perplexity-powered Siri might. Acquiring this AI capability now could set Apple up for the next decade of AI-driven features across all its products.
In short, Perplexity offers Apple a jump-start – a chance to buy, rather than painstakingly build, a competitive AI search/assistant platform. It’s a departure from Apple’s usual strategy (they rarely make huge acquisitions), but the potential benefits range from shoring up strategic defenses to delighting users with new features.
Implications: Apple’s Next Moves in the AI Race
If Apple goes through with the Perplexity acquisition (or even a deep partnership), the implications for its AI strategy are significant. First, it would signal that Apple is truly serious about “catching up” in AI by spending big. For years, Apple seemed content to let others take the spotlight in cloud AI while it focused on on-device machine learning for things like FaceID, camera enhancements, and minor Siri upgrades. A move to acquire Perplexity would be Apple essentially saying: We can’t afford to sit on the sidelines anymore. It could also inspire confidence among developers and consumers that Apple’s ecosystem will remain cutting-edge. (Many in the tech community have been asking if Apple has a grand AI plan – this would be a resounding answer.)
From a competitive standpoint, Apple owning Perplexity would heat up the AI arms race even further. Google, for one, would see a direct challenge to its core search business arising on one of the world’s largest device platforms. If Apple replaces Google with an AI-driven search on hundreds of millions of iPhones, that threatens Google’s mobile search dominance (and its ad revenues) long-term. It’s worth noting that news of Apple’s interest in Perplexity “reportedly caused Google’s shares to dip”, showing how seriously investors take the prospect of Apple entering search in a big way. Apple would also be more independent of any single partner, which aligns with its general strategy (similar to how it’s been developing its own chips to replace Intel).
For Meta and OpenAI, Apple’s move would mean another powerful player in AI distribution. Meta has been open-sourcing models to get AI everywhere; if Apple creates a walled-garden AI search on iOS, Meta might lose a chance to have its tech (like Llama) power Apple’s systems. OpenAI, which already has an iOS ChatGPT app and an API business, would suddenly face an Apple-owned competitor built into every iPhone by default. However, it could also push these companies toward more partnership with Apple (or competitive differentiation) – for example, Microsoft (OpenAI’s partner) might double down on Windows + AI advantages to keep pace with macOS + AI.
It’s also possible Apple will pursue a multi-pronged AI strategy: buying Perplexity and partnering where convenient. Reports indicate Apple has considered allowing Siri to use Google’s Gemini AI for certain queries – an ironic twist where Siri would lean on Google’s AI brains. Apple could still do that for some functions while using Perplexity for search, depending on what makes the most sense and what deals are feasible. Apple might also continue developing its own in-house large language model (the rumored “Ajax” project) for full control in the long term, using Perplexity’s team to aid that effort. In any case, an acquisition would rapidly accelerate timelines: Apple’s internal debates would turn into execution on integrating Perplexity’s tech.
Of course, integrating a startup’s technology is not trivial. Apple would need to ensure Perplexity’s AI meets Apple’s strict privacy and quality standards. Apple famously touts privacy, so it might adapt Perplexity’s cloud-based approach to handle more on-device processing or anonymization. Content moderation and factual accuracy (“AI hallucinations”) would also be areas Apple must tackle so that an “Apple AI search” doesn’t give harmful or wildly incorrect answers. Apple tends to move deliberately on user-facing features, so even post-acquisition, it might be some time (perhaps iOS 19 or 20) before we see a full-fledged Apple AI assistant rollout. The upside is that Apple’s massive resources and data could make Perplexity’s system even better – e.g., hooking into Apple’s knowledge graph (Siri’s database of people/places) and utilizing the Neural Engine for faster responses.
Financially, Apple has plenty of cash to absorb a $10–15B purchase, but it would be watched closely since Apple usually favors smaller talent acquisitions. If the deal happens, it might also open the door for future AI-related acquisitions by Apple – something the industry hasn’t seen much of. It could prompt other big players to consider consolidating AI startups as well, to avoid being left behind.
Impact on Apple Users and Customers
What would all this mean for the people who use Apple’s products? In the coming years, Apple customers could see some exciting enhancements:
A Smarter Siri (At Last): The most immediate consumer-facing change would likely be a major upgrade to Siri’s intelligence and capabilities. Instead of Siri deflecting complex questions with web search links or “I found this on the web,” it could directly answer you in natural language, drawing on up-to-date web information via Perplexity’s engine. Imagine asking Siri, “What’s the best way to fix a leaky faucet?” or “Compare these three project management software for my business,” and getting a clear, sourced answer spoken back to you. This would bring Siri closer to the likes of ChatGPT or Google Assistant in utility. Personal assistant tasks could also improve – Siri might handle multi-step requests (schedule meetings, send messages, create reminders based on context) with more AI-driven understanding. Essentially, iPhone and Mac users would gain a built-in AI assistant that’s actually helpful for both simple queries and complex research, rather than the limited Siri of today.
AI-Powered Search in Safari and Spotlight: Apple could integrate Perplexity’s conversational search into Safari’s address bar (URL bar) or the system-wide Spotlight search. Users who type a question might see an instant AI-generated answer with relevant citations, above the list of traditional web links. This means less clicking through pages and more getting what you need in a summarized form. For many everyday queries (“what’s the weather in Paris next week” or “how do I convert a PDF to Word format”), this could save time. It would make the iPhone’s default experience more like using an AI concierge. If Apple does remove Google as the default search in favor of its own solution, users might notice a shift – possibly a very positive one if done well (fewer ads and trackers than Google, and answers instead of just links). There could be a learning curve, but given that many users (especially younger ones) are already trying tools like ChatGPT, the adjustment might be smooth.
Cross-Platform Consistency: One strength Apple could leverage is tight integration. An AI powered by Perplexity could be ubiquitous across your Apple devices. For example, ask a question on your Mac, and continue the conversation on your iPhone or iPad seamlessly. Or an AI-generated summary you requested in Safari on Mac could be handoff’d to your iPhone. Apple could bake the AI deeply into iOS/iPadOS/macOS as a service that third-party apps might also call on (with user permission). Think about dictation or email apps using Apple’s AI to summarize a long email thread, or Calendar suggesting meeting agendas based on emails – the possibilities expand once a robust general AI is available on-device.
New AI-Enhanced Apps and Features: We might also see entirely new features. Apple could create a standalone “Knowledge” chatbot app (as has been rumored) for those who want a ChatGPT-like experience dedicated in an app. This app might allow users to ask anything, research topics, or even brainstorm with an AI persona, all with Apple’s design finesse. Additionally, existing apps will likely get AI boosts: the Messages app could offer AI-generated replies or summaries of long chats; Mail might draft emails for you; Photos could have an AI that helps search your images or even create albums (“Siri, find all photos of me at the beach and make a slideshow with music”). On the productivity side, Apple’s iWork suite (Pages, Numbers, Keynote) could integrate AI assistants to help write documents or analyze spreadsheets, akin to Microsoft’s 365 Copilot.
Enhanced Accessibility and Personalization: AI can also dramatically improve accessibility features – something Apple cares about. With a powerful language model, Siri could do things like summarize onscreen content for visually impaired users, or translate speech in real time for someone who is deaf (some of which Apple has started doing in limited ways). Personalization could mean the AI learns your preferences (all on-device to protect privacy) – e.g. knowing that when you say “Call Dad,” you mean via WhatsApp instead of phone, or that when you ask for restaurant recommendations you prefer Italian. A contextual understanding Siri has been a long-time promise; this acquisition could bring it closer to reality.
Privacy and Offline Capabilities: Apple will surely emphasize that your data stays yours. We might see a hybrid approach where the AI processes sensitive info on-device and only queries the cloud for broader knowledge. Apple’s Neural Engine might allow running moderately large models on the device for quick responses or analysis of your content, while the heavy lifting (like searching the entire web) is done on Apple’s servers powered by Perplexity. The end result for users: AI features that feel fast, respect privacy, and have Apple’s signature polish in design. This could set Apple’s offering apart from say, Google’s (which is cloud-centric and fueled by data for ads). For IT leaders concerned about data security, Apple’s approach might even allow enterprise control over what AI features are enabled, ensuring corporate or personal data isn’t sent to external clouds unnecessarily.
Keeping Users in the Ecosystem: Ultimately, if Apple provides a top-notch AI experience, it keeps users loyal and less likely to stray to competitors. In recent years, if an iPhone user wanted the best AI assistant, they might use Google Assistant or Alexa on the side, or just use ChatGPT on the web. In the future, those capabilities might be baked into the Apple ecosystem, reducing the need for third-party solutions. For consumers and professionals invested in Apple’s platform, it means fewer compromises – you can have premium hardware, privacy, and cutting-edge AI all together.
There’s also an implication for developers and IT integrators: Apple’s move could create new opportunities to build apps that leverage the system-wide AI. Just as developers today use SiriKit or CoreML, in a post-Perplexity world Apple might offer APIs for the new AI engine. Enterprises running on Apple hardware could potentially plug into these for their workflows (imagine using Siri to query an internal knowledge base, if Apple’s AI can be fine-tuned or linked with business data securely). These are speculative, but not far-fetched given the direction of the industry.
Looking Ahead
While an Apple–Perplexity deal is still just a rumor, it’s one that industry watchers are taking seriously. Apple’s competitors have eclipsed it in the generative AI arena, but Apple now appears poised to leap back into the fray with a mix of home-grown efforts and possible acquisitions. For a company that typically prefers internal innovation, the consideration of a $14B AI startup purchase shows how crucial AI leadership is perceived to be.
If the acquisition happens, Apple will be making a statement that it’s not too late for them to be an AI leader – albeit doing so the Silicon Valley way of “acqui-hiring” a talented team and technology. For tech-savvy users and IT decision-makers, this could be a turning point. We could see an Apple that innovates in AI as aggressively as it does in silicon chips. The AI race would no longer be a Google-Microsoft/OpenAI-Meta trilogy, but include Apple as a formidable fourth participant. Each platform (Android, iOS, Windows, web) would have its own AI flavor, and competition would likely spur faster improvements and more options for consumers.
On the other hand, if Apple decides not to buy Perplexity (or the talks fizzle out), that in itself will be telling. It might mean Apple is confident in its internal AI projects or prefers partnering (with Google or others) over owning. In that scenario, Apple users might still get new AI features, but more gradually and perhaps reliant on third-party AI services.
One thing is certain: AI will be a core theme in tech for the foreseeable future, and even the traditionally tight-lipped Apple can’t hide in the shadows on this. Tim Cook and his team have openly said they see huge potential in AI and are “playing the long game”. The Perplexity rumor suggests the long game might soon enter a new, more intense phase. Apple finds itself at a crossroads: continue the slow-and-steady internal development, or make a big splash to catch up quickly. The coming months (and Apple’s next announcements) will be watched closely by everyone in the industry.
In summary, the rumored Perplexity acquisition could herald a much more AI-centric Apple – one that aims to deliver AI-powered search and assistance across its devices, closing the gap with Google’s and OpenAI’s offerings. For users of Apple products, it promises a more powerful digital assistant and smarter software that keeps pace with the best in the field. And for Apple itself, it’s about securing its future in a world where AI capabilities are increasingly integral to tech leadership. The race isn’t over, and Apple may be about to hit the turbo boost.
Sources:
Reuters – Apple execs held talks about buying Perplexity (Bloomberg report) reuters.comreuters.comreuters.com
Tom’s Guide – Apple considering buying Perplexity AI to power search/Siri tomsguide.comtomsguide.com
The Verge – Apple falling behind in AI; Siri delays (WWDC 2025) theverge.comtheverge.com
SamMobile – Apple and Meta interest in Perplexity; Samsung’s plans sammobile.comsammobile.com
PhoneArena – Apple’s $20B Google search deal at risk; Perplexity as fallback phonearena.comphonearena.com
AppleInsider – Apple’s future AI ambitions (contextual Siri, chatbot, copilot) appleinsider.comappleinsider.com