Apple is exploring the acquisition of Perplexity AI in a deal reportedly valued at around $14 billion, signalling its most ambitious move yet to strengthen its artificial intelligence capabilities as competition and regulatory scrutiny intensify. Internal discussions, led by Apple’s head of M&A, Adrian Perica and services chief, Eddy Cue, are in early stages and have not yet involved Perplexity’s management directly.
If completed, the deal would dwarf Apple’s previous largest acquisition, the $3 billion Beats deal in 2014, and could fundamentally reshape the search and AI landscape for Apple’s billions of users.
A calculated move amid antitrust pressure
Apple’s interest in Perplexity is closely linked to mounting antitrust pressure on its $20 billion-per-year search partnership with Google, which is under threat from US regulators. Should that deal unravel, Apple would need a robust in-house search alternative. Integrating Perplexity’s conversational AI and real-time search technology could help Apple reduce its dependence on Google, leverage advanced AI models, and open new revenue streams through search-based advertising.
Eddy Cue, Apple’s senior vice president of services, recently testified that Safari search volumes had declined for the first time, attributing the dip to users’ growing preference for AI-driven search tools like Perplexity and ChatGPT. Cue noted, “AI is a new technology shift, creating new opportunities for new entrants. AI search providers such as OpenAI, Perplexity AI, and Anthropic will eventually replace traditional search engines like Google.”
A bid for Perplexity, and to catch up in the AI race
The potential acquisition comes as Apple faces criticism for lagging behind rivals in generative AI. At WWDC 2025, Apple’s upgrades to Apple Intelligence and Siri were seen as incremental compared to advances from Google, Meta, and Microsoft. Acquiring Perplexity would instantly inject Apple with leading conversational search technology, helping it catch up in the AI race and potentially enabling deep integration within Safari and Siri.
Bloomberg reports Apple is also considering partnerships with other AI leaders, including OpenAI and Anthropic, as part of a broader AI roadmap. However, a Perplexity deal would represent a decisive pivot, reinforcing Apple’s R&D efforts and device experience with generative intelligence.
Perplexity- plagiarism accusations and regulatory scrutiny
The path to acquisition is not without obstacles. Perplexity has caused the company to face accusations of plagiarism and copyright concerns, prompting investors to be cautious and question how Apple would address these issues if a deal proceeds. Additionally, any acquisition of this scale would invite intense regulatory scrutiny, especially given Apple’s dominant position in hardware and software ecosystems.
Integrating Perplexity could also jeopardise Apple’s lucrative partnership with Google, creating potential headwinds for earnings. Analysts warn that execution will be critical: “Apple would need to break from some of its old habits (siloed development, extreme secrecy, slow rollout) to capitalise on Perplexity’s fast-paced innovation fully,” wrote BofA’s Mohan.
Apple is not alone in eyeing Perplexity. Earlier this year, Meta reportedly attempted to acquire the startup. Samsung is now preparing to embed Perplexity’s AI assistant in its upcoming Galaxy S26 devices and Bixby assistant, highlighting the platform’s growing appeal as a Google alternative. Perplexity’s latest funding round, backed by NVIDIA, valued the company at $14 billion, making it one of the most valuable AI startups globally.
What’s next?
At this stage, Apple’s discussions remain exploratory, and the company may ultimately pursue a partnership or technology integration rather than an acquisition. The outcome will likely hinge on the resolution of the Google antitrust case and Apple’s internal alignment on M&A risk and strategy.
Regardless of the outcome, Apple’s pursuit of Perplexity underscores its determination to lead the next phase of AI adoption and reduce strategic dependence on Google. Whether through internal development, partnerships, or bold acquisitions, leadership in AI-enhanced search and personal assistant technology is now mission-critical for Apple’s future.
