Since Apple’s recent earnings call, discussions regarding a possible acquisition of Perplexity have subsided, particularly after claims that Perplexity circumvented content limitations. Meanwhile, with a growing number of engineers departing from its Foundation Models team, Apple’s need for new talent is becoming increasingly pressing. If Perplexity isn’t a feasible choice, which other companies could Apple think about acquiring?
Traditionally, acquiring a small, lesser-known AI lab seemed like a sensible strategy for Apple, as noted by Jason Snell on the Upgrade podcast. Nevertheless, Apple has already explored this avenue, reportedly completing over 30 AI acquisitions in 2023, exceeding the total of Google, Meta, Microsoft, and Amazon combined. Despite these initiatives, Apple has faced difficulties in achieving its AI goals and commitments.
For example, while rivals like OpenAI and Anthropic are constantly enhancing their AI offerings, Apple’s Writing Tools, unveiled a year ago, have made minimal advancements. Furthermore, the overhaul of Siri has encountered multiple documented setbacks, signaling a broader concern within Apple’s AI approach.
At this point, Apple requires more than just raw talent; it seeks an infusion of product-ready technology from a firm with a proven history of delivering quality products. This significantly narrows down the list of potential acquisition candidates.
### Who Could Be a Good Fit?
OpenAI and Anthropic are unavailable, and while Perplexity could improve Siri’s functionality, its present focus seems to lie elsewhere. At an $18 billion valuation, Apple might discover greater value in other firms that more closely align with its objectives and culture.
One strong contender could be **Mistral**, a $10 billion French startup recognized for its extensive array of foundation models, APIs, and consumer-oriented products. Mistral’s dedication to privacy and responsible AI development resonates well with Apple’s principles, making it a compelling choice.
Another possible candidate is **Aleph Alpha**, a German entity that has secured nearly $1 billion in funding. However, its emphasis on enterprise and public-sector AI may not coincide with Apple’s consumer-focused strategy, which could create hurdles in motivation and talent retention.
Aside from these, the pool of viable candidates is shrinking. **Ai2** is acknowledged for its open research and tooling, while **Kimi**, situated in Beijing, is recognized for its K2 model. **Cohere** also surfaces as a potential option, leaning towards enterprise solutions.
Newcomers like **Thinking Machines Lab** and **Safe Superintelligence** are attracting interest based on their promises rather than established products, further complicating the landscape.
In summary, Apple’s options for acquisitions are constrained, and as the valuations of AI labs continue to increase, the need for a strategic move becomes more urgent. Currently, Mistral emerges as a key candidate for Apple to contemplate, representing an essential opportunity to realign its AI strategy before the disparity with competitors grows even larger.
