Apple Explores Acquisition of Perplexity AI in Strategic Move to Enhance Safari Search

Apple has quietly initiated internal discussions about acquiring AI search startup Perplexity in a move to boost its own Safari search.

Reuters and Bloomberg News report that, while the move is still in its infancy and without any formal offer or direct talks with Perplexity’s management, the proposed acquisition will boost the tech giant’s AI capabilities while reducing dependency on Google.

The $14 billion Perplexity currently offers an AI-powered conversational search engine similar to OpenAI’s ChatGPT Search and Google’s Gemini.

Apple’s Adrian Perica and Eddy Cue (VP-Corporate Development and SVP-Services, respectively) led other of Apple’s AI leadership in the internal discussions.

Perplexity’s acquisition by Apple would be the latter’s largest should it push through. Experts say it will dwarf Apple’s 2014 $3 billion purchase of Beats.

Leaders envision the potential acquisition as crucial in enhancing Siri and Safari with smarter, AI-driven search features.

The proposed deal comes at a crucial time. Apple’s longtime default-search deal with Google, worth $20 billion annually, is under intense scrutiny amid US anti-trust proceedings.

Integrating Perplexity into Safari could reduce Apple’s reliance on Google. More importantly, it can align Apple’s broader push toward AI search alternatives.

Meta and other tech giants have also explored a potential Perplexity acquisition. However, talks fell short over valuation.

Experts say Apple’s approach is more deliberate. The brand looks to combine acquisition with potential partnership. However, Apple’s internal teams continue working round the clock to assess the proposed deal’s strategic and regulatory implications.

Apple’s internal discussions reflect its drive to push AI forward. To be more specific, it wants AI that runs directly on devices while moving beyond traditional web-based search.

Cupertino executives remain mum about any deals. However, the discussions hint at Apple’s intent to rethink how users discover information. They want users to search information using advanced AI.

Acquiring Perplexity could mark a pivotal shift in Apple’s strategy. It could redefine how its users interact with information.