In a rapidly accelerating artificial intelligence (AI) race, tech giants like Apple and Meta Platforms are actively exploring strategic acquisitions of AI startups to maintain and bolster their competitive edge. This intensifying interest is largely driven by the growing traction of AI-powered search alternatives, such as Perplexity and ChatGPT, which are increasingly challenging Google's long-standing dominance in the global search engine market, particularly among younger demographics.

Apple, the iPhone maker, has reportedly engaged in internal discussions regarding a potential bid for AI startup Perplexity. These early-stage talks, according to a Bloomberg News report, involve key executives including Adrian Perica, Apple's head of mergers and acquisitions, along with services chief Eddy Cue and top AI decision-makers. The reported motivation behind these discussions is Apple's interest in integrating AI-driven search features, like those offered by Perplexity AI, directly into its Safari browser. Such a move could signify a significant shift away from Apple's long-standing search partnership with Alphabet's Google. However, Perplexity has stated, “We have no knowledge of any current or future M&A discussions involving Perplexity,” in response to media reports.

Meanwhile, Meta Platforms has also been highly active in the AI startup landscape. Bloomberg News reported that Meta attempted to acquire Perplexity earlier this year. Beyond this, the Mark Zuckerberg-led company recently made a substantial investment of $14.2 billion in Scale AI and has brought its CEO, Alexandr Wang, into a leadership role within a newly established, 50-person research lab at Meta. This lab is specifically tasked with the ambitious goal of creating artificial superintelligence (ASI)—AI systems designed to surpass human intelligence. Furthermore, sources indicated to CNBC that Meta also approached Ilya Sutskever, former OpenAI chief scientist, with an offer to acquire his new $32 billion venture, Safe Superintelligence, though the offer was reportedly declined.

These developments unfold amidst broader industry dynamics, including a recent public accusation by OpenAI CEO Sam Altman, who claimed Zuckerberg was attempting to poach OpenAI's talent. Concurrently, Meta faces significant regulatory scrutiny, with the United States Federal Trade Commission (FTC) having opened an antitrust case against the company. The FTC alleges that Meta has historically engaged in acquiring rivals to stifle competition and establish a social media monopoly, with the acquisitions of Instagram in 2012 and WhatsApp in 2014 being central to the case.