Why Apple is Eyeing Perplexity AI?

Vasundhra Tewari

| 2025-07-14 | Industry & Events

If you are a part of Silicon Valley, staying ahead of the curve is everything. For giants like Apple or Meta, the go-to move is to open the checkbook when in-house innovation hits a wall, whether due to talent gaps or tech limitations.

That often means acquiring a high-performing startup, onboarding its team, and either folding the technology into existing products or letting the founders run with it under the company’s umbrella.

Following the same, Apple and Meta recently grabbed the attention of the world with reports of their interest in acquiring Perplexity AI, the buzzworthy startup led by Indian-origin computer scientist Arvind Srinivas, to level up their game in AI.

While it’s common for Silicon Valley giants to discreetly court promising companies, this time two tech titans are openly vying for the same prize. This move signals a rare and strategic shift in approach, especially for Apple, a company known for its tight ecosystem and strong preference for building technology internally rather than acquiring it.

Why this Strategy Shift?

Building an AI-Based Search Engine

As the Artificial Intelligence-focused startup Perplexity AI has a search engine that delivers real‑time answers with citations, it offers a conversational experience similar to ChatGPT or Google’s Gemini.

If Apple could seal the deal with the company, it could directly integrate this into Safari, Siri, Spotlight, and even in its AR headset, that can help in reducing dependency on Google’s search engine.

Enhancing the Tech Capabilities

Perplexity AI comes equipped with a skilled team and robust technology, including its language model, Sonar, and the flexibility to operate atop other large language models. This makes it a strong fit for Apple, which is actively looking to strengthen its AI talent pool and expand its technological capabilities.

An Antitrust-Aware Strategy

While Apple earns approximately $20 billion annually from Google to remain the default search engine on Safari. Amidst the antitrust scrutiny possibility that could impact this deal, Apple needs a viable backup that happens to be what Perplexity AI offers.

Acceleration of the AI Roadmap

Market giants like Microsoft, Google, Amazon, and Meta have already poured significant resources into advancing their AI capabilities. On the other hand, Apple’s recent moves like the launch of “Apple Intelligence” and upgrades to Siri have received a lukewarm response.

By acquiring Perplexity AI, Apple can get the momentum it needs to fast-track its AI strategy and close the competitive gap.

Perplexity AI Quashes the Speculation- Reports

According to Fortune India report, the company has denied any merger or acquisition talks with Apple, pushing back against speculation triggered by a Bloomberg report released earlier this week.

In a statement to Fortune India, the company clarified:

“We have no knowledge of any current or future M&A discussions involving Perplexity.”

While reports suggested Apple might be exploring a potential acquisition or partnership, Perplexity’s response firmly pushes back against the idea of a deal being in motion. However, the company did acknowledge the growing interest from major tech players, adding:

“It shouldn’t be a surprise that the best OEMs in the world want to offer the best search and most accurate AI for their users, and that’s Perplexity.”

However, this response hints at ongoing conversations around search partnerships or technology integrations, even if no formal acquisition discussions are taking place.

For now, it seems the speculation around Apple’s next big AI move will have to wait, though all eyes remain on what both companies do next.