Summary:
Apple explores acquiring Perplexity AI to enhance its AI and search engine capabilities
Deal could be Apple's largest acquisition ever, surpassing the $3B Beats purchase
Meta previously tried to buy Perplexity, highlighting the startup's high demand in the AI sector
Acquisition aims to address Apple's lag in generative AI and Siri's delayed upgrades
Potential Samsung partnership with Perplexity adds competitive pressure on Apple
Apple Inc. is reportedly in early discussions about acquiring Perplexity AI, an artificial intelligence startup, as part of its strategy to bolster its AI capabilities and potentially develop an AI-based search engine. This move comes amid concerns over the future of Apple's lucrative partnership with Google, which is currently under scrutiny by US antitrust enforcers.
Key Discussions and Potential Impact
- Adrian Perica, Apple's head of mergers and acquisitions, alongside services chief Eddy Cue, has been leading the internal talks.
- The acquisition could mark Apple's largest deal to date, surpassing the $3 billion Beats purchase in 2014.
- Perplexity AI recently secured funding at a $14 billion valuation, offering real-time AI-powered search answers.
The Bigger Picture
Apple's interest in Perplexity highlights its urgent need to catch up in the generative AI race, especially after delays in its Siri AI upgrade and a relatively modest showing at the WWDC. A deal could not only provide Apple with cutting-edge AI technology but also a significant talent boost.
Competitive Landscape
- Meta Platforms Inc. previously attempted to acquire Perplexity, opting instead for a stake in Scale AI.
- Samsung Electronics Co. is also in talks with Perplexity for a deep partnership, adding another layer of competition in the AI space.
What's Next?
While discussions are preliminary, the outcome could reshape Apple's AI strategy and its position in the highly competitive tech industry. The decision may hinge on the results of the ongoing Google antitrust trial, which could force Apple to seek alternatives to its current search engine arrangement.
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