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Apple Weighs Bid for Perplexity AI as Future of Google Search Deal Hangs in the Balance

Apple is quietly exploring an acquisition of Perplexity AI, the fast-rising generative-search start-up valued at roughly $14 billion, according to people familiar with the matter. Senior executives—including mergers-and-acquisitions chief Adrian Perica and services boss Eddy Cue—have held internal discussions in recent weeks about whether to make a formal offer, sources say. The talks are said to be preliminary and could still fizzle.

A Record-Setting Price Tag

Any purchase would dwarf Apple’s previous largest deal, the $3 billion acquisition of Beats Electronics in 2014. Perplexity’s valuation soared after it positioned itself as an AI-powered alternative to traditional web search, delivering conversational answers rather than lists of links.

Strategic Timing

Apple’s interest comes as a U.S. antitrust case threatens its lucrative revenue-sharing agreement with Google, which pays Apple an estimated $20 billion annually to remain the default search engine on iPhone, iPad, and Mac devices. Should regulators unwind that partnership, Apple would need a compelling search option of its own—or a fresh alliance—before the next major iOS release.

Partnership vs. Purchase

Insiders say executives are weighing two scenarios:

  • Full acquisition, granting Apple exclusive rights to Perplexity’s conversational search engine and engineering talent.

  • Strategic partnership, integrating Perplexity’s API into Safari, Siri, and Spotlight while avoiding regulatory scrutiny and a hefty price tag.

Complicating matters is Perplexity’s reported near-final deal with Samsung to embed its AI search features in Galaxy devices. Any exclusivity demanded by Apple could require renegotiating—or cancelling—that arrangement.

No Comment From the Companies

Apple declined to comment on “rumor or speculation.” Perplexity said it had “no knowledge of any current or future M&A discussions involving Perplexity,” though it acknowledged ongoing talks with several major technology firms about potential integrations.

What’s at Stake

  • AI Differentiation: Apple unveiled its own on-device generative model, Apple Intelligence, at WWDC earlier this month but has yet to show a bona fide web-scale AI search engine.

  • Services Revenue: Should the Google deal unravel, an Apple-branded search experience could cushion the hit to the company’s services segment.

  • Competitive Landscape: Microsoft has a tight partnership with OpenAI; Amazon backs Anthropic; Meta is hiring AI luminaries. A Perplexity move would ensure Apple is not left out of the AI power-pairing scramble.

Next Steps

Any serious bid would require board approval and likely face intense regulatory review, given Apple’s size and the current scrutiny of big-tech acquisitions. For now, engineers inside Apple’s AI/ML division are said to be evaluating how Perplexity’s tech stack could mesh with Siri’s planned overhaul for iOS 19.

Whether Apple buys, partners, or walks away, one thing is clear: the battle for next-generation search is heating up, and Cupertino doesn’t intend to watch from the sidelines.

Photo Credit: DepositPhotos.com

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