Apple Considers Acquisition of AI Startup Perplexity
Apple is reportedly considering acquiring AI startup Perplexity, aiming to enhance its AI capabilities amid criticism for slow advancements in artificial intelligence, especially with Siri. Discussions are in early stages involving high-level executives, and if pursued, the acquisition could surpass Apple’s previous largest buyout. Perplexity’s valuation at $14 billion adds pressure as competitors ramp up their AI efforts.
In an intriguing development, Apple may be eyeing an acquisition of AI startup Perplexity, a company known for its chatbot and search engine services that have attracted around 15 million users. This information, reported by Bloomberg, reveals that as Apple grapples with criticism over its slow adoption of artificial intelligence—particularly with Siri—the purchase could help the tech giant bolster its AI capabilities. Apple currently stands with a hefty market cap exceeding $3 trillion, making a strategic acquisition seem plausible.
Discussions around the potential acquisition are reportedly happening at a preliminary level, led by Adrian Perica, Apple’s head of mergers and acquisitions. Insiders have indicated that conversations involve top executives, including services chief Eddy Cue, but there’s no guarantee that a formal offer will emerge from these talks. Apple appears keen to accelerate the development of its own AI-driven search engine to integrate more AI functionalities into its products, helping the company stay relevant in an increasingly tech-savvy consumer landscape.
The acquisition of Perplexity could take on increased significance, especially if Apple is faced with severing ties with Google’s search engine due to ongoing antitrust issues. Perplexity’s valuation currently sits around $14 billion, which, if accurate, would mark it as Apple’s biggest acquisition yet, dwarfing the previous record held by the $3 billion purchase of Beats back in 2014.
As the tech industry charges forward in the AI arena, Apple has come under scrutiny following its latest Worldwide Developers Conference which showcased a rather modest set of AI improvements. Competitors like Meta have already made bold moves—earlier this year, they attempted to buy Perplexity before opting for a significant investment in Scale AI. Additionally, Samsung is reportedly working on a partnership with Perplexity, further complicating Apple’s path to a potential acquisition.
No matter how Apple intends to navigate the AI landscape and placate eager audiences and stakeholders, one thing is clear: expect a hefty investment.
In summary, Apple’s potential acquisition of Perplexity highlights its urgency to boost its AI capabilities amid rising competition. With Perplexity valued at approximately $14 billion, this could be an unprecedented move for Apple, especially if it faces challenges with Google. As tech rivals ramp up their AI strategies, Apple must act decisively to ensure it remains a key player in a rapidly evolving landscape.
Original Source: tech.co
