Apple Considering Acquisition of AI Search Engine 'Perplexity'

Internal Review in Early Stages

Apple is reportedly considering the acquisition of the artificial intelligence (AI)-based search engine startup Perplexity AI (hereafter Perplexity), according to a report by Bloomberg on June 20 (local time).

Citing sources, Bloomberg reported that Adrian Perica, Apple's head of mergers and acquisitions (M&A), has discussed the possibility of acquiring Perplexity with Eddy Cue, head of services, and other key AI decision-makers at Apple. However, the discussions are said to be in the early stages, with no proposal yet made to Perplexity, and it remains undecided whether the talks will lead to an actual acquisition offer, according to the sources.

Perplexity is a well-known startup that operates an AI-based search engine, positioning itself as a competitor to the world's largest search engine company, Google. The company provides an AI search service that utilizes real-time web-based information to answer user queries.

Recently, this startup completed a funding round at a valuation of $14 billion. If the acquisition goes through, it could become Apple's largest acquisition to date. Apple's current largest acquisition was Beats, a streaming music service and headphone manufacturer, which the company purchased for $3 billion in 2014.

Apple's consideration of acquiring Perplexity is seen as a move to secure AI talent and technology, as the company has fallen behind its competitors in the field of AI technology. Last year, Apple introduced its own AI system, Apple Intelligence, but has been criticized for failing to keep up with the intensifying AI competition, especially as the upgrade of its core voice assistant, Siri, has been indefinitely delayed. Acquiring Perplexity is expected to accelerate the development of an AI-based search engine at Apple.

Meta, the parent company of Facebook, is also reported to have attempted to acquire Perplexity. According to CNBC, a U.S. business media outlet, a source stated that Meta explored the possibility of acquiring Perplexity, but the deal did not materialize and the negotiations "ended by mutual agreement." Another source said that "Perplexity withdrew from the acquisition talks." The reasons for the breakdown of the negotiations were not disclosed.