Apple advances talks for $14B Perplexity AI deal: biggest acquisition yet

Apple is in advanced discussions to acquire Perplexity AI, valued at $14 billion, aiming to build an AI-powered search engine integrated into Safari and Siri. This move could disrupt its $20 billion annual Google search partnership and marks Apple's largest potential acquisition, signaling a strategic pivot towards AI-driven search technology.

Sources:
Times of IndiaThe HinduGsmarena+8
Updated 1h ago
Tab background
Sources: Times of IndiaThe HinduNdtvprofit+5
Apple Inc. is advancing talks to acquire AI startup Perplexity AI in a deal valued at $14 billion, potentially its largest acquisition ever.

The Cupertino-based tech giant aims to enhance its artificial intelligence capabilities and develop an AI-powered search engine, reducing its dependence on Google’s $20 billion annual search deal, which is currently under scrutiny by U.S. antitrust regulators.

"Apple is reportedly exploring acquiring AI startup Perplexity AI to enhance its artificial intelligence capabilities. Valued at $14 billion, this would be Apple's largest acquisition ever," according to reports.

Perplexity AI, founded in 2022, offers a real-time conversational AI search engine that competes with rivals like OpenAI’s ChatGPT and Google’s Gemini. The startup recently completed a funding round valuing it at $14 billion.

"Perplexity recently completed a funding round that valued it at $14 billion," Bloomberg News reported.

Apple executives, including Adrian Perica, head of mergers and acquisitions, and Eddy Cue, senior vice president of services, have held internal discussions about the potential acquisition.

"Adrian Perica, the companys head of mergers and acquisitions, has weighed the idea with services chief Eddy Cue and top AI decision-makers," the reports said.

The acquisition would provide Apple with a ready-made AI search platform and a team of AI talent to accelerate its roadmap. It could also integrate Perplexity’s technology into Apple’s Safari browser and Siri, marking a significant shift away from Google.

Apple faces the risk of losing its lucrative Google search deal, which generates roughly $20 billion annually, as the Department of Justice challenges the arrangement in court.

"Apples senior vice president, Eddy Cue, revealed during Googles antitrust trial that Safari search volumes declined for the first time in April, attributing this to growing user preference for AI-driven search alternatives like Perplexity and ChatGPT," highlighting the shifting landscape.

While talks are reportedly in early stages and Perplexity has denied knowledge of any current or future merger discussions, Apple is also considering a partnership option to integrate Perplexity’s AI search engine into its ecosystem.

This move reflects Apple’s strategic push to stay competitive in the rapidly evolving AI space, where alternatives to traditional search engines are gaining traction, especially among younger users.

"Such a deal would help Apple develop an AI-based search engine, part of efforts to cope with the potential loss of a longstanding arrangement with Google," the reports concluded.
Sources: Times of IndiaThe HinduNdtvprofit+1
Apple is in early talks to acquire AI startup Perplexity AI for $14 billion, marking its largest acquisition to date. The deal aims to boost Apple’s AI capabilities and reduce reliance on Google’s $20 billion annual search deal, amid growing competition from AI-powered search engines like Perplexity and ChatGPT.
Section 1 background
The Headline

Apple advances $14B Perplexity AI acquisition talks

Key Facts
  • Perplexity AI recently completed a funding round valuing it at $14 billion, highlighting its strong market position as an AI startup.The Hindu3Ndtvprofit
  • Meta Platforms attempted to acquire Perplexity earlier in 2025 to enhance its AI capabilities, according to Bloomberg News.M
  • Apple executives, including Eddy Cue and Adrian Perica, have held internal talks about acquiring Perplexity AI as part of efforts to boost AI talent and technology.Cnbctv184Ndtvprofit+1
  • Apple is exploring integrating Perplexity's AI search technology into Safari and Siri to reduce its reliance on Google and develop an AI-powered search engine.Times of IndiaMoneycontrol4+1
  • The acquisition would be Apples largest to date, surpassing the $3 billion Beats deal in 2014.The Hindu3Ndtvprofit
  • Perplexity AI has denied knowledge of any current or future M&A discussions, creating uncertainty about the acquisition talks.
  • Apple continues advanced talks and evaluation of Perplexity AI technology as of June 2025, with executives actively considering a close relationship.NdtvprofitMoneycontrol2
Apple is reportedly exploring acquiring AI startup Perplexity AI to enhance its artificial intelligence capabilities. Valued at $14 billion, this would be Apple's largest acquisition ever.
Times of India
Times of India
Perplexity recently completed a funding round that valued it at $14 billion, according to the Bloomberg News report on Friday.
The Hindu
The HinduNdtvprofit
According to Mark Gurman's internal sources, Apple's executives are discussing the possibility of acquiring Perplexity AI, an AI-powered web search engine that has gained traction in the last year or so.
Gsmarena
Gsmarena
The report further added that Adrian Perica, Apple's head of mergers and acquisitions (M&A), has weighed the idea with services chief Eddy Cue and top AI decision-makers.
M
M
If the Apple’s buyout deal of Perplexity materialises, it would be one of its biggest acquisitions after Beat, which was bought for $3 Bn in 2014.
Inc42
1
Apple Inc. executives have held internal discussions about potentially bidding for artificial intelligence startup Perplexity AI, seeking to address the need for more AI talent and technology.
Ndtvprofit
Cnbctv18Ndtvprofit
If the deal moves forward, Apple could integrate Perplexity’s technology into its Safari browser, a significant shift away from its long-standing reliance on Google for search.
Financialexpress
1
Such a deal would help Apple develop an AI-based search engine, part of efforts to cope with the potential loss of a longstanding arrangement with Google. That partnership, which involves making Google the default browser on devices, generates roughly $20 billion a year for Apple — and is now under threat from US antitrust enforcers.
Ndtvprofit
Cnbctv18Ndtvprofit
Apple is exploring its most ambitious acquisition yet — a potential bid for fast-rising AI startup Perplexity, according to a new report from Bloomberg’s Mark Gurman. Perplexity, best known for its real-time, conversational AI search engine, was recently valued at $14 billion.
Moneycontrol
1
Key Stats at a Glance
Perplexity AI valuation
$14 billion
Times of India
Section 2 background
Other Updates

Additional strategic considerations around Perplexity AI

Key Facts
  • Perplexity is in advanced talks with Samsung to integrate some of its features into Samsung's ecosystem, indicating multiple partnership interests.Gsmarena
  • Apple executives leading the AI acquisition and recruiting efforts include Adrian Perica and Eddy Cue, both reporting to CEO Tim Cook.1
  • Acquiring Perplexity could provide Apple with a ready-made consumer AI search platform and a recognized AI brand, along with a team of AI talent to accelerate its roadmap.Moneycontrol1
Section 3 background
Background Context

Perplexity AI background and Apples AI search challenges

Key Facts
  • Perplexity AI was founded in 2022 by Srinivas, Denis Yarats, Johnny Ho, and Andy Konwinski as an AI-powered search engine offering conversational search experiences.Inc421
  • Perplexity offers AI-powered search tools that generate concise information summaries, competing with rivals like OpenAIs ChatGPT and Googles Gemini.1
  • Apple faces pressure to develop AI-powered search capabilities due to its $20 billion annual deal with Google, which is under scrutiny from US antitrust regulators.Times of IndiaCnbctv185+2
  • Apples Safari search volumes declined for the first time in April 2025, attributed to growing user preference for AI-driven search alternatives like Perplexity and ChatGPT.
Key Stats at a Glance
Perplexity AI funding round valuation
$14 billion
The HinduNdtvprofit
Alphabet search advertising revenue 2022
$162 billion
Times of India
Alphabet total revenue 2022
$283 billion
Times of India
Apple annual revenue from Google deal
$20 billion
Cnbctv18Ndtvprofit
Article not found
⌂ CuriousCats.ai

Article

‹

Source Citations