SAN FRANCISCO – Apple Inc. is said to be in talks to buy Perplexity AI, a promising startup valued at $14 billion, as reported by Bloomberg News on Friday. These early discussions suggest Apple wants to catch up quickly in the generative AI space, where competitors like Microsoft, Google, and OpenAI have already advanced.
If this deal goes through, it would become Apple’s largest acquisition, far exceeding its $3 billion purchase of Beats in 2014, and could completely change how Apple approaches AI-powered search and integration across its products.
Founded in 2022 by Aravind Srinivas, Andy Konwinski, Denis Yarats, and Johnny Ho, Perplexity AI is based in San Francisco and has backing from Nvidia. The startup operates a conversational search engine giving users fast, summarised answers with source links, putting it in direct competition with services such as OpenAI’s ChatGPT and Google’s Gemini. In May 2025,
Perplexity handled 780 million queries, showing its growing popularity, especially among younger users who prefer AI-driven search over traditional engines. The company has also launched extra tools, including solutions for searching internal files, finance features, and a web browser called Comet, setting itself up as a challenger to browsers like Chrome and Safari.
Apple Needs Better AI
Apple’s interest comes at a key time. The company faces pressure to improve its AI features after a shareholder lawsuit claimed it exaggerated the readiness of its “Apple Intelligence” tools, including upgraded Siri functions, during its June 2024 Worldwide Developers Conference.
According to Bloomberg, Adrian Perica, Apple’s head of mergers and acquisitions, has discussed a possible bid with services chief Eddy Cue and leading AI experts inside the company. No formal offer has been made, but Apple has held several meetings with Perplexity recently to assess its technology, which shows serious interest.
Apple’s reasoning is clear. For years, it has relied on a $20 billion annual deal with Google to keep Google Search as the default on iPhones, iPads, and Macs. This agreement, though, is now facing scrutiny from American antitrust regulators and the Department of Justice, which are looking for ways to reduce Google’s control over the search market.
Testifying in Google’s antitrust case, Eddy Cue mentioned that in April 2025, Safari’s search traffic dropped because of the popularity of AI search tools like Perplexity and ChatGPT. Buying Perplexity would help Apple guard against possibly losing its deal with Google and let it develop its AI-powered search, which could be built into Safari or Siri to offer users a fresh alternative.
Adding Perplexity’s AI search to Safari
Apple is also thinking about working with Perplexity rather than buying it outright. This could mean adding Perplexity’s AI search to Safari as an option, or using its technology to boost Siri’s speed and accuracy, with improvements likely to arrive in 2026.
However, Apple faces competition. Samsung Electronics is close to investing in Perplexity and plans to use the startup’s search tech in future products, including the Galaxy S26 series, due in early 2026. This move could make it harder for Apple to secure an exclusive partnership, so Apple may feel pressed to move quickly.
Big tech’s interest in Perplexity is not new. Earlier in the year, Meta Platforms tried to buy the company but could not agree on terms, according to Bloomberg. Meta then invested $14.3 billion for a 49% stake in Scale AI, a firm focused on data labelling, and brought in its CEO, Alexandr Wang, to lead a new AI research group.
Meta’s pursuit shows how valuable Perplexity’s technology has become in the race for AI talent and innovation. Perplexity itself has not commented on any ongoing merger or acquisition talks, telling Reuters, “We have no knowledge of any current or future M&A discussions involving Perplexity.”
Apple faces high stakes
For Apple, this potential purchase would be a big change from its usual approach to acquisitions. The company is known for buying smaller firms to add talent or specific features, staying away from huge deals. Spending $14 billion on Perplexity would mark a new direction, reflecting the need to speed up AI development amid tough competition and regulatory questions.
Opinions among analysts differ. Tim Seymour on CNBC’s “Fast Money” believes the deal could have a major impact, while Guy Adami suggests Apple could simply license the technology instead.
Apple faces high stakes. If successful, either an acquisition or partnership could bring advanced AI skills and top talent into Apple’s ecosystem, helping the company compete in a fast-changing market.
However, there are risks, including Perplexity’s legal issues over content licensing, highlighted by a recent BBC lawsuit. As Apple weighs its decision, the outcome could shape the future for both AI and search, influencing not only Apple but the entire technology sector.
Sources: Bloomberg News, Reuters, CNBC
