Apple weighing acquisition of ChatGPT competitor Perplexity service

Apple is reportedly looking into the acquisition of the startup Perplexity AI to enhance its position in the artificial intelligence sector. The potential acquisition is seen as a strategic move to bolster Apple’s capabilities in developing its AI-based search engine amidst concerns over the potential termination of its longstanding agreement with Google.

Reports indicate that discussions regarding the possible acquisition have taken place among Apple Inc. executives. Adrian Perica, the head of mergers and acquisitions, along with Services chief Eddy Cue and other key decision-makers in the AI field, have explored the idea of acquiring Perplexity AI. This move aligns with Apple’s efforts to tap into the increasing demand for AI specialists and technologies.

The development of an AI-powered search engine by Apple is crucial in light of the risk posed by the potential loss of its lucrative agreement with Google. Currently, Google serves as the default browser on Apple devices, generating an estimated $20 billion in annual revenue for the tech giant. However, this arrangement is now facing scrutiny from US antitrust regulators, prompting Apple to consider alternative strategies to mitigate any potential impact.

While discussions between Apple executives and Perplexity management have not yet taken place, it has been reported that Meta Platforms Inc. previously sought to acquire Perplexity earlier this year. In response to these reports, Perplexity issued a statement indicating that they are unaware of any ongoing or future merger and acquisition discussions involving their company. Apple has chosen not to provide any comments on the matter at this time.

The potential acquisition of Perplexity AI represents a significant opportunity for Apple to strengthen its foothold in the AI domain and expand its capabilities in developing cutting-edge technologies. By exploring new avenues for innovation and growth, Apple aims to secure its position in the rapidly evolving landscape of artificial intelligence.