Apple Explores Perplexity AI Acquisition as Antitrust Pressures Mount on Google Partnership

By: Mkeshav

On: Monday, June 23, 2025 9:47 PM

Apple (AAPL)

Apple is reportedly in the early stages of internal discussions about acquiring Perplexity AI, a rapidly rising artificial intelligence startup known for its advanced AI-powered search engine technology. While no formal offer has been made, the move underscores Apple’s growing urgency to strengthen its AI capabilities, particularly as its longstanding partnership with Google faces increasing scrutiny and uncertainty amid ongoing antitrust proceedings.

Strategic Rationale: AI Talent and Search Independence

The potential acquisition is being spearheaded by Adrian Perica, Apple’s head of mergers and acquisitions, alongside senior executives including Eddy Cue, Apple’s services chief. The primary motivation behind the talks is twofold: to secure top-tier AI talent and to accelerate the development of an in-house AI-based search engine.

Such a move would not only enhance Apple’s competitive position in the generative AI space but also reduce its reliance on Google, which currently pays Apple billions annually to remain the default search engine on iPhones and other devices.

Apple has reportedly met with Perplexity’s leadership several times in recent months, exploring both a potential acquisition and alternative scenarios such as a strategic partnership.

The company envisions integrating Perplexity’s technology into its ecosystem, potentially powering a new AI-driven search engine and enhancing Siri’s capabilities—especially after delays to major Siri upgrades were announced for 2026.

The discussions come at a critical juncture for Apple. The tech giant has faced criticism for its cautious and privacy-centric approach to AI, which some analysts argue has left it trailing competitors like Google, OpenAI, and Meta in the race for generative AI leadership.

Meanwhile, Perplexity AI, backed by investors such as NVIDIA and recently valued at $14 billion, has emerged as a formidable player, offering AI search tools that deliver direct, conversational answers—an increasingly popular alternative to traditional search engines.

Apple’s interest is also fueled by the potential fallout from the Department of Justice’s antitrust case against Google, which threatens the lucrative search exclusivity deal between the two companies.

Should regulators force Apple to end this arrangement, acquiring Perplexity would provide a strategic fallback, enabling Apple to launch its own AI-powered search platform and maintain control over a critical user experience.

What’s Next: No Deal Yet, But High Stakes Remain

While the talks are still in their infancy and may not result in a formal offer, Apple’s overtures toward Perplexity signal a decisive shift in its AI strategy. The company is clearly preparing for a future where AI-driven search and assistant technologies are central to user experience—and where independence from Google could become a necessity.

As the competitive landscape in AI accelerates and regulatory pressures mount, Apple’s next move will be closely watched by industry observers, investors, and consumers alike. Whether through acquisition, partnership, or internal innovation, Apple’s pursuit of Perplexity AI reflects its determination to secure a leading role in the next era of intelligent technology.

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