Apple in talks to buy AI search startup Perplexity
Apple is reportedly in talks to acquire AI search startup Perplexity, valued at $1.4 billion, as part of its generative AI push.
Apple’s AI strategy could include acquiring Perplexity, a rising search engine startup valued at $1.4 billion, according to Wedbush analyst Dan Ives. The report comes amid growing pressure on the iPhone maker to step up its artificial intelligence capabilities in the face of rapid innovation from competitors like Microsoft, Google, and OpenAI.
Analyst suggests Apple can't afford to build AI alone
Dan Ives, a well-known technology analyst at Wedbush Securities, stated that Apple is in advanced talks to acquire Perplexity, an AI-powered search engine startup backed by investors such as Nvidia and Jeff Bezos. He estimates the potential deal to be around $1.4 billion.
Speaking to CNBC, Ives remarked, “Apple cannot build it alone. They need to buy their way into AI.” His comments highlight the consensus among analysts that Apple’s current AI offerings are lagging behind the industry, particularly in generative AI tools and conversational interfaces.
Apple did not respond to requests for comment on the potential acquisition. Perplexity AI has also remained silent on the speculation.
Perplexity seen as strategic AI asset
Founded in 2022, Perplexity has quickly gained traction as an AI-native alternative to Google Search, offering real-time, citation-based answers through a chatbot-style interface. It recently closed a $63 million funding round led by Daniel Gross and Jeff Bezos’ investment firm, bringing its valuation to $1.04 billion as of January 2024. Nvidia is also an investor.
The startup has attracted users with its clean interface, transparency in sourcing, and lack of ads—an approach that differs from conventional search engines. Its user base reportedly grew to over 10 million monthly active users within a year, according to third-party estimates.
If Apple were to acquire Perplexity, the integration could support Apple’s ambitions to embed generative AI deeper into its ecosystem, especially as it looks to compete with Microsoft’s Copilot and Google’s Gemini products.
Analysts say that buying Perplexity would not only bring core AI talent to Apple but also help the company reduce reliance on external providers. No official confirmation has been provided by either company at this time.