Apple may acquire Perplexity AI to strengthen its AI capabilities

Apple is reportedly considering acquiring Perplexity AI in a bid to catch up in the race for artificial intelligence. The tech giant has discussed both a full acquisition and a potential partnership with the startup, known for its advanced AI model. Interestingly, Perplexity AI claims it was unaware of Apple’s intentions but isn’t surprised by the interest.

A final decision hasn't been made, and much depends on Apple’s existing $20 billion annual deal with Google, which makes Google the default search engine in Safari. If that agreement is terminated due to the ongoing antitrust trial, Apple could replace Google with Perplexity AI as the default AI-powered search engine. Following the news, Google’s shares dropped.

Acquiring Perplexity AI could accelerate Apple’s AI development, particularly its delayed Apple Intelligence features and the long-awaited improvements to Siri. With competitors like Samsung and Google advancing quickly, Apple risks falling behind. The company is also rumored to be in talks to bring Google’s Gemini AI to iPhone, mirroring Samsung’s approach.

Bringing Perplexity AI in-house would give Apple a major boost across its ecosystem, including future products like AR glasses and smart home hubs. While the acquisition would be expensive, it could provide Apple with a crucial edge for years to come.