Breaking News: Apple in Talks to Acquire Perplexity AI
Investing.com – Apple Inc (NASDAQ: AAPPL) has initiated internal discussions regarding the acquisition of Perplexity AI, a burgeoning artificial intelligence startup renowned for its advanced chatbot platform. According to Bloomberg, these preliminary talks, involving senior executives such as the manager of mergers and acquisitions, Adrian Perica, and the director of services, Eddy Cue, are still at an early stage and may not lead to a formal offer.
Apple’s AI Ambitions Under Fire
This move underscores Apple’s efforts to keep pace with its competitors amid growing pressure to integrate artificial intelligence across its hardware and software ecosystem. Apple has faced persistent delays in improving Siri, leaving the voice assistant trailing behind competitors like ChatGPT from OpenAI and Grok by Elon Musk.
Perplexity AI: A Game-Changer?
Perplexity, recently valued at $14 billion during a fundraising round, could significantly accelerate Apple’s ambitions in AI research and user interaction. The acquisition would also represent the largest in Apple’s history, surpassing previous transactions both in terms of magnitude and long-term strategic impact on the company.
Reevaluating Google’s Role
Apple’s interest in Perplexity comes as the company re-evaluates its relationship with Google (Nasdaq: Googl). Google’s search engine generates around $20 billion per year for Apple as the default option on iPhone and other devices. This agreement is under regulatory scrutiny by U.S. antitrust authorities, adding uncertainty about its future and prompting Apple to consider developing its own AI-based search engine.
Competitive AI Landscape
According to Bloomberg, Apple has not yet contacted Perplexity management regarding a possible acquisition. Meanwhile, Meta Platforms (Nasdaq: Meta) attempted its own offer earlier this year but could not reach an agreement, instead focusing on a $14.3 billion transaction for a 49% stake in Scale AI while building a team to develop a “supervisor.”
The AI market has become increasingly competitive, with large tech companies vying for top talent and advanced capabilities to stay ahead in the generative AI race. For Apple, traditionally conservative about large-scale acquisitions, a move towards Perplexity would signal a strategic shift, highlighting the urgency to close the AI gap.
Stay tuned to archyde.com for the latest updates on this breaking news story and more insights into the rapidly evolving world of artificial intelligence.
