Apple Eyes Acquisition of AI Startup Perplexity

Apple is in discussions to potentially acquire artificial intelligence startup Perplexity AI. The tech giant is exploring this acquisition to enhance its AI capabilities and reduce its dependence on Google, particularly amid U.S. antitrust challenges that threaten its lucrative agreement with Google for default search engine rights on Apple devices. Head of M&A at Apple, Adrian Perica, along with top company executives, are overseeing these preliminary talks. A successful acquisition would bolster Apple's AI talent pool and provide the necessary technology to possibly develop its search engine, mitigating its reliance on Google's services. Valued at $14 billion, acquiring Perplexity would be Apple's largest takeover, surpassing its 2014 purchase of Beats. Additionally, Apple might pursue a strategic partnership with Perplexity instead of a full acquisition, but this could be complicated by Perplexity’s rumored integration with Samsung. The competitive landscape reveals that Meta Platforms had previously shown interest in Perplexity, and the competition extends to recruiting top AI talent. Daniel Gross, co-founder of Safe Superintelligence Inc, is sought after by both Apple and Meta. As the generative AI race intensifies, Apple's strategic decisions on AI acquisitions and partnerships become increasingly critical for its future positioning.