Apple Inc. executives have reportedly engaged in internal discussions regarding a potential acquisition of or a strategic partnership with Perplexity AI, a burgeoning artificial intelligence startup. These discussions underscore Apple’s ongoing efforts to bolster its AI capabilities, specifically addressing its need for enhanced AI talent and cutting-edge technology to remain competitive in the rapidly evolving AI landscape.
The talks come at a time when major tech giants are aggressively vying for dominance in the AI sector. Following Meta’s inability to reach an agreement with Perplexity, it instead secured a 49% stake in Scale AI for $14.3 billion. This significant investment is part of Meta’s broader strategy to establish a ‘superintelligence AI team,’ which now includes Scale co-founder Alexandr Wang, highlighting the intense competition for top-tier AI expertise and foundational technology.
Apple’s current interest in Perplexity AI stems from several factors. Perplexity, known for its conversational AI search engine, could provide Apple with a crucial infusion of specialized AI talent. Furthermore, acquiring a company with a recognized brand in the AI space and an great existing consumer product could significantly accelerate Apple’s own AI development and market penetration. Such a deal could also prove beneficial for future recruitment efforts, attracting more top AI professionals to Apple.
Beyond a full acquisition, Apple has also explored an alternative strategy: a partnership with Perplexity. This collaborative approach would involve integrating Perplexity as an AI search engine option within Apple’s Safari web browser and, more significantly, incorporating its capabilities into Siri, Apple’s voice assistant. This integration could dramatically enhance Siri’s conversational abilities, search accuracy, and overall utility, addressing a key area where Apple has been perceived to lag behind some competitors.
Multiple meetings have taken place between Apple and Perplexity in recent months, with Apple’s AI team actively evaluating Perplexity’s underlying technology. This sustained engagement suggests that Apple is giving serious consideration to a close relationship with the startup, whether through acquisition or a deep partnership. Perplexity, for its part, has acknowledged that it is not surprising for leading technology manufacturers to seek out the best search and most accurate AI solutions for their users, asserting that ‘That’s Perplexity.’
Notably, Eddy Cue, Apple’s Senior Vice President of Internet Software and Services, whose department oversees Apple’s streaming services and iCloud, has previously expressed interest in Perplexity. This indicates a high-level recognition of Perplexity’s potential value to Apple’s broader ecosystem. The discussions coincide with reports that Apple is also exploring the use of generative AI to expedite the design of its custom chips, which are central to its devices’ performance.
The potential collaboration or acquisition of Perplexity AI signifies Apple’s intensified push into artificial intelligence, aiming to integrate more advanced AI capabilities directly into its products and services. This move is crucial for Apple to maintain its competitive edge and deliver next-generation user experiences in an increasingly AI-driven technological landscape, ensuring that its devices and software remain at the forefront of innovation.
Source: The Hindu BusinessLine
