Apple executives have held internal talks about buying AI startup Perplexity

Internal Talks Signal Apple’s AI Ambitions

Apple is quietly plotting its next move in the artificial intelligence arms race—and the target is Perplexity AI, a startup that’s become the talk of Silicon Valley. According to the Bloomberg report, Apple’s top brass, including M&A chief Adrian Perica and services boss Eddy Cue, have been floating the idea of acquiring Perplexity in internal strategy sessions. The talks are embryonic, with no formal approach to Perplexity’s leadership, but the implications are seismic.

The Google Deal Dilemma

Apple’s interest in Perplexity may be more than just a grab for AI talent. It’s also a defensive play. The company’s lucrative partnership with Google — which pays Apple an estimated $20 billion annually to remain the default search engine on Safari — is under scrutiny in an ongoing U.S. antitrust trial. If the court mandates a breakup of that deal, Apple will need a Plan B. Perplexity, with its real-time AI-powered answers, could be that. Perplexity, meanwhile, recently completed a funding round at a $14 billion valuation — a figure that would make any acquisition the largest in Apple’s history, surpassing its $3 billion Beats purchase in 2014.

A Record-Breaking Acquisition in the Making

A deal of that size would shatter Apple’s previous acquisition records, eclipsing the $3 billion Beats buyout in 2014. It would also signal a dramatic shift for a company known for its cautious M&A approach. But Apple’s hand is being forced: Siri lags behind rivals, and the company’s much-hyped “Apple Intelligence” features are still vaporware for most users. Meanwhile, competitors like Samsung and Google are racing ahead, and Meta has already tried—and failed—to snap up Perplexity, pivoting instead to a $14.3 billion stake in Scale AI.

Perplexity’s Potential Impact

The stakes are high. Perplexity’s real-time, web-powered answers could supercharge Apple’s efforts to build an AI-native search engine and finally give Siri the brains it needs. It would also bring a fresh infusion of AI talent and a brand with growing consumer cachet—critical assets as Apple tries to catch up in generative AI and stave off the perception that it’s falling behind.

Rivalry and Recruitment: The Talent War Intensifies

But Apple isn’t the only suitor. Samsung is reportedly close to sealing a deep partnership with Perplexity, and Meta is aggressively recruiting AI stars, including Daniel Gross, whose previous startup, Cue, was snapped up by Apple in 2013. The race for AI talent is turning into a high-stakes bidding war, with Apple and Meta vying for the same brains and breakthroughs.

The Market Watches and Waits

For now, both Apple and Perplexity are playing it cool—no comment from Cupertino, and a carefully worded denial from the startup. But the market is watching closely: news of Apple’s interest sent Google shares sliding, a sign of just how disruptive a Perplexity-powered Apple search engine could be.

Conclusion: Apple’s Next Big Move?

As the AI land grab intensifies, Apple faces a stark choice: move fast, or risk being left behind in the next era of intelligent devices. The Perplexity play could be Apple’s boldest bet yet—and the opening move in a new chapter of Silicon Valley rivalry.