Apple is in early talks internally to acquire AI search startup Perplexity, signalling a bold strategic move as it seeks to enhance its AI capabilities and reduce reliance on Google. Perplexity, valued at approximately $14 billion following a recent funding round, offers an AI-powered search service that delivers answers in a conversational format, much like ChatGPT or Google's Gemini. Their growing brand recognition and real-time capabilities address a gap in Apple’s AI strategy.

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Evolving AI Strategy 

The discussions reflect Apple’s ambition to strengthen its AI offerings and potentially embed Perplexity’s technology directly into Safari and Siri. Regulatory pressure may disrupt Apple's long-standing dependence on Google Search through this effort.

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Competitive Pressure

Apple is not alone: Meta reportedly pursued Perplexity earlier this year before pivoting to another AI investment. The move now positions Apple among big tech firms racing to secure AI search innovation, especially as Perplexity usage among younger users surges. Neither Apple nor Perplexity has officially confirmed ongoing merger or acquisition talks. Perplexity’s public response: “no knowledge of any current or future M&A discussions,” and Apple has remained silent.