Apple is reportedly considering acquiring AI search startup Perplexity in what would be the iPhone maker’s largest acquisition in company history. The potential $14 billion deal would give Apple access to Perplexity’s AI-powered search engine and chatbot technology, which serves around 15 million users as a leading ChatGPT alternative, helping Apple accelerate development of its own search capabilities and enhance Siri’s intelligence.
What you should know: Apple’s head of mergers and acquisitions Adrian Perica has been in early-stage discussions with top executives about a potential Perplexity offer, though no bid has been made yet.
- Executives from both companies have met several times over the past few months, according to Bloomberg reporting.
- Apple is also considering a partnership arrangement rather than a full acquisition as an alternative approach.
- The move comes as Apple’s planned AI revamp for Siri has been pushed back to 2026, creating urgency around finding external AI capabilities.
The big picture: Acquiring Perplexity could serve as a strategic fallback if regulators force Apple to end its lucrative search partnership with Google.
- Apple could use Perplexity’s technology to develop its own AI-powered search engine across iPhones, helping close the gap with competitors like Google and Meta in the AI race.
- The startup combines traditional search with AI assistant capabilities, using large language models to answer queries conversationally while maintaining cross-platform accessibility.
In plain English: Perplexity works like having a knowledgeable research assistant that can search the internet and explain findings in conversation, rather than just showing a list of website links like traditional search engines.
Competitive landscape: Apple isn’t the only tech giant eyeing Perplexity’s capabilities.
- Meta, the company behind Facebook and Instagram, attempted to acquire Perplexity earlier this year before ultimately moving forward with Scale AI instead.
- The timing coincides with Apple’s cautious approach at WWDC 2025, where the company remained vague about concrete timelines for Apple Intelligence upgrades.
Why this matters: The potential deal would dwarf Apple’s previous largest acquisition—the $3 billion Beats purchase in 2014—by more than four times.
- Perplexity’s $14 billion valuation reflects the premium Apple may need to pay to quickly gain competitive AI search capabilities.
- The acquisition would signal Apple’s recognition that it needs external expertise to deliver on its AI ambitions and compete effectively in the rapidly evolving AI landscape.
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