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Apple in Early Talks to Acquire Perplexity AI, Its Largest Deal Yet

by Thomas Babychan
June 21, 2025
in Business, News, Tech, Trending, World
Reading Time: 4 mins read
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Apple in Early Talks to Acquire Perplexity AI, Its Largest Deal Yet
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In recent weeks, Apple has been engaged in private discussions about a potential acquisition of the AI search startup Perplexity, according to sources familiar with the matter. These talks, led by Apple’s services chief Eddy Cue and mergers and acquisitions lead Adrian Perica, are still in early stages. As of now, no formal offer has been made, and Perplexity’s management remains unaware of any active negotiation. Both companies have declined to comment, staying silent on the speculative discussions.

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The discussions come as Apple faces growing pressure over its reliance on Google for search services, a partnership reportedly worth around $20 billion annually. That arrangement is currently under scrutiny amid an ongoing U.S. antitrust lawsuit, prompting Apple to explore alternative paths. In testimony earlier this year, Eddy Cue noted that as traditional web search shifts toward AI-driven results, Apple is considering several providers, including Perplexity, for possible integration into its Safari browser and Siri voice assistant.

Perplexity has drawn attention as a fast-growing player in AI search, recently valued at $14 billion. If acquired, the startup would become Apple’s largest-ever purchase—eclipsing its 2014 acquisition of Beats for $3 billion. Beyond a full acquisition, Apple may be exploring a strategic partnership that could see Perplexity embedded as a Safari search option or powering Siri responses, providing a softer entry into AI search without a full buyout.

Interest in Perplexity reflects Apple’s need to boost its AI capabilities. Despite announcing its Apple Intelligence platform at the Worldwide Developers Conference earlier this month, many of the AI features were considered modest and less advanced than rival systems. Apple has also delayed a significant overhaul of Siri until 2026, a move seen as a symptom of the broader challenge the company faces in catching up to competitors like OpenAI and Google.

Perplexity’s strengths lie in its AI-driven answers and real-time search access, all wrapped in a consumer-friendly interface. It also offers an iPhone app that showcases performance often rated higher than Siri or ChatGPT in certain tasks. This has attracted attention within Apple, as it seeks to enhance its flagship products with more capable AI tools. Acquiring Perplexity would immediately give Apple both skilled AI engineers and a recognizable AI product that could be adapted for Apple’s ecosystem.

Apple’s internal discussions about Perplexity have not yet involved Perplexity’s leadership. Sources indicate that while Apple’s teams have closely evaluated Perplexity’s technology, they held internal meetings but have not presented a formal offer. Perplexity has publicly stated it is unaware of any such talks. Apple, as is its practice, has declined to comment on potential acquisition plans.

Including Perplexity in Apple’s offerings could help the company reduce dependency on its agreement with Google. Currently, Google search is the default option in Safari across Apple’s devices, and the fees generated reportedly account for a major portion of Apple’s services revenue. However, this deal is under legal pressure and may not continue in its current form. Apple appears ready to develop its own AI-backed search tool, and of all the recent AI search names, Perplexity stands out for its technology and public recognition.

Perplexity’s valuation poses a challenge. The startup was last valued at $14 billion, making it one of the highest-priced AI-focused businesses outside of larger competitors. For Apple, acquiring Perplexity may match or exceed that figure—significantly higher than prior deals. Notably, Apple is known for a cautious approach to large acquisitions, often preferring internal development or smaller purchases. However, with AI becoming increasingly central to its strategy, Apple may now be ready to pursue a larger, bolder acquisition.

A possible acquisition would shift Apple’s M&A strategy, aligning it with the moves of larger tech rivals. Microsoft bought OpenAI for significant investment, and Google has acquired multiple AI companies in recent years. Apple, which traditionally has avoided high-profile acquisitions, would set a new precedent by acquiring Perplexity outright. This could quickly close its gap in generative AI, giving Siri a powerful new foundation and positioning Safari to compete more directly with AI-first browsers.

But acquisition is not the only path Apple is considering. A partnership with Perplexity may offer the same benefits with less complexity. Under such an arrangement, Perplexity’s technology could be integrated directly within Apple products, perhaps becoming an option within Safari or used to power Siri’s responses. This would allow Apple to test the technology within its systems while avoiding a full merger.

Another complication is Perplexity’s reported negotiations with Samsung. If Perplexity finalizes a deal with Samsung, it could lock the startup in with Apple’s largest hardware rival. That could limit Apple’s access to Perplexity’s platform or raise the cost of acquisition. A competing interest from Samsung adds complexity to Apple’s decision. There are also reports that Meta had its own discussions with Perplexity but eventually pivoted to invest in another AI firm. Even nonbinding interest from major players suggests Perplexity is a highly desirable target.

For Apple, acquiring or partnering with Perplexity solves immediate challenges. Siri would gain access to a modern AI search engine, helping restore confidence in Apple’s assistant. Safari could offer users AI-enhanced answers with real-time web access. This would strengthen Apple’s overall AI strategy, which includes the Apple Intelligence platform announced recently.

However, the acquisition also presents risks. Integrating Perplexity’s technology and international operations into Apple could be complex. Apple would need to ensure the startup aligns with its stringent privacy and security policies. There are also cultural risks: Perplexity is accustomed to startup agility, while Apple has an established corporate structure. Achieving integration without slowing the technology’s pace could be a challenge.

Apple also faces the task of ensuring that any feature based on Perplexity complies with App Store regulations and antitrust requirements. The recent scrutiny of its deal with Google could make regulators cautious about another acquisition that secures market dominance in AI search. Apple may need to take a strategic approach, potentially enabling Perplexity integration in ways that encourage competition or user choice.

If Apple moves forward, announcing a deal would signal a major change in its approach to AI. This kind of purchase would show that Apple is ready to invest heavily in external AI talent, tools, and user-facing products. It could also spark further consolidation in the AI space, drawing more attention to startups focused on search and generative models.

Ultimately, whether Apple acquires Perplexity or opts for partnership, the outcome will tell much about its AI direction. If Apple places Perplexity-powered tools at the heart of Siri or Safari, the company would demonstrate readiness to adopt new technologies more aggressively. If talks end without an agreement, it could indicate a preference to build its own AI capabilities in-house or shift focus elsewhere.

Tags: #Perplexity AIAppleApple AIApple AI ChatbotPerplexity AI news
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Thomas Babychan

Thomas Babychan is an experienced business and economic journalist with a focus on international trade, stock market, banking, and multilateral organizations. He also has expertise in international relations and diplomacy.

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