Apple Considers Acquisition of Perplexity AI

In a strategic move to enhance its artificial intelligence capabilities, Apple is reportedly considering the acquisition of Perplexity AI. This acquisition, as noted by Bloomberg, aims to enrich Apple’s talent pool and develop an AI-based search engine in the future. Adrian Perica, Apple’s head of mergers and acquisitions, has already engaged in discussions about this potential acquisition with key figures in the company, including Eddy Cue, Senior Vice President of Services.

Although the talks are still in preliminary stages and an official bid has not yet been made, the conversations indicate a strong interest in integrating Perplexity AI’s advanced technology into Apple’s offerings. One of the main objectives is to enhance Siri’s functionality and possibly create a search engine powered by Perplexity AI. In recent months, Apple executives have reportedly had multiple discussions with Perplexity regarding various collaboration potentials.

Integration with Safari and AI Talent Acquisition

During a recent court case concerning Google’s Search antitrust situation, Cue mentioned that Apple had discussed the possibility of integrating Perplexity’s technology into Safari. This integration would serve as a pivotal step in enhancing Apple’s search capabilities, particularly in light of its lucrative deal with Google that currently makes Google’s search engine the default on iPhones — a deal that garnered Apple $18 billion in 2021.

The ongoing regulatory scrutiny surrounding Apple’s partnership with Google might force Apple to seek alternatives. Should regulators mandate an end to this arrangement, acquiring Perplexity could pave the way for Apple to strengthen its AI search offerings. Additionally, Apple is actively competing with other tech giants, such as Meta, for AI talent. Reports indicate that Apple has expressed interest in hiring AI professionals, including Daniel Gross, founder of Safe Superintelligence Inc., to bridge the gap in its AI capabilities.

Meeting User Expectations

There is an evident imperative for Apple to enhance its AI capabilities. Just months ago, the company delayed the rollout of an anticipated new version of Siri, which was a critical aspect of its Apple Intelligence initiative. This delay exemplifies the urgency Apple faces in matching the rapid advancements seen in the AI landscape.

The proposed acquisition of Perplexity AI not only underscores Apple’s desire to innovate within the search engine space but also serves as a mechanism to attract much-needed talent. As the competition escalates, the ability to harness advanced AI technologies will be increasingly critical for maintaining relevance and fulfilling user expectations in an evolving digital landscape.