Apple Eyes Perplexity AI in Bid to Supercharge Search, Catch Rivals

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Apple is reportedly exploring a major move into the AI search space, with top executives considering an acquisition or partnership with the AI startup Perplexity. According to a new report, the company’s head of acquisitions, Adrian Perica, and services chief, Eddy Cue, have discussed a deal to bolster Apple’s AI talent and develop a proprietary AI-powered search engine.

The internal discussions are still in the early stages, with no formal offer made to Perplexity yet. However, the move highlights Apple’s urgent need for a contingency plan as it faces intense regulatory pressure over its lucrative deal with Google.

If regulators force Apple to end the multi-billion dollar partnership that makes Google the default search engine on iPhones, acquiring or partnering with Perplexity would provide a ready-made alternative. Cue was previously confirmed during Google’s antitrust trial to have already met with Perplexity to discuss a potential Safari integration.

This potential deal also highlights Apple’s broader effort to catch up in the intense AI competition. The company is perceived as lagging behind its rivals and is aggressively scouting for talent, reportedly competing with Meta to hire top figures, such as AI founder Daniel Gross.

Apple’s internal efforts have hit snags, including a recent delay in the rollout of a more powerful, AI-driven Siri, which was a cornerstone of its “Apple Intelligence” pitch. Acquiring Perplexity would not only provide advanced search technology but also inject much-needed expertise into Apple’s teams as they race to close the gap with their competitors.