It’s well-known that Apple’s initiatives in the AI domain have been rather unimpressive, to say the least. Firstly, the limitations of Apple Intelligence features are quite noticeable. Secondly, Apple’s collaboration with ChatGPT highlights the company’s deficit in the necessary AI capabilities to thrive in a progressively competitive and advanced market. Consequently, a recent speculation indicates that Apple might aim to utilize its cash reserves to quickly enhance its AI offerings.
A fresh rumor from Mark Gurman at Bloomberg, who is usually reliable regarding Apple rumors, reports that Apple executives have discussed the possibility of acquiring Perplexity AI. Furthermore, to emphasize the seriousness of these discussions, two of the named executives involved in the dialogues are Eddy Cue and Adrian Perica, Apple’s chief of mergers and acquisitions. Additionally, representatives from the two organizations have already participated in initial talks.
“Acquiring Perplexity would provide Apple with an influx of AI expertise, a recognized brand in the AI sector, and a consumer product,” Gurman observes. “A transaction could also potentially aid in future recruitment initiatives.”
What exactly is Perplexity AI?
In broad terms, Perplexity resembles ChatGPT in that both platforms utilize AI to create responses to user inquiries. However, the distinction lies in the fact that ChatGPT is more conversational, whereas Perplexity functions more like a conventional search engine, albeit in an enhanced manner.
It will be intriguing to see what Apple intends to do with Perplexity, should an acquisition take place. Perhaps it will be integrated into Siri and ultimately take the place of ChatGPT for more complex questions.
It’s also important to highlight that the search agreement between Apple and Google, where Google compensates Apple billions to establish Google as the default search engine on mobile Safari, may not be allowed to persist for much longer. Remember that Google is currently facing a DOJ lawsuit over alleged monopolistic practices in the search industry. Google was discovered to have inappropriately exploited its search dominance, and now it remains to be seen what the consequences will be. Some anticipate that Apple’s search arrangement with Google might eventually be abandoned. As a result, Apple may wish to make mobile search in Safari more conducive to AI.
Perplexity AI comes at a high price
Apple is among the wealthiest companies worldwide, which will be beneficial since Perplexity is not exactly inexpensive. The firm currently holds a valuation of $14 billion. If that figure is close to what Apple would pay, it would undoubtedly be the company’s priciest acquisition to date. As things stand, Apple’s $3 billion acquisition of Beats in 2014 remains its most costly corporate purchase.
