Apple Executives Have Held Internal Talks About Buying AI Startup Perplexity
[SAN FRANCISCO] Apple executives have held internal discussions about potentially bidding for artificial intelligence (AI) startup Perplexity AI, seeking to address the need for more AI talent and technology.
Adrian Perica, the company’s head of mergers and acquisitions, has weighed the idea with services chief Eddy Cue and top AI decision-makers, according to sources with knowledge of the matter. The discussions are at an early stage and may not lead to an offer, said the sources, who asked not to be identified because the matter is private.
Such a deal would help Apple develop an AI-based search engine, part of efforts to cope with the potential loss of a longstanding arrangement with Google. That partnership, which involves making Google the default browser on devices, generates roughly US$20 billion a year for Apple, and is now under threat from US antitrust enforcers.
To date, Apple executives have not discussed a bid with Perplexity management. Bloomberg News reported earlier Friday that Meta Platforms tried to buy Perplexity earlier this year.
“We have no knowledge of any current or future M&A discussions involving Perplexity,” the AI startup said. Apple declined to comment.
The Perplexity service provides real-time answers to questions using the latest information from the web. If Apple were to engage in talks to buy the startup, such a move likely would not happen until a decision is made in the Google antitrust trial. That’s when Apple would know whether its lucrative Google agreement may have to be unwound.