Apple appears to be eyeing a strategic acquisition that could revitalize its artificial intelligence efforts. According to reports, the tech giant is in discussions to acquire the startup Perplexity AI, known for its robust AI capabilities, in a bid to enhance its competitive standing in the rapidly evolving AI landscape.

Despite being the subject of speculation, Perplexity AI was taken by surprise by Apple’s acquisition discussions. However, the startup is not entirely shocked, given its reputation for offering one of today’s most advanced AI models. Having Perplexity AI on board could provide a significant boost to Apple as it strives to catch up in a field where it has notably lagged.

While nothing is finalized, the potential acquisition hangs in the balance, heavily influenced by the outcomes of an ongoing antitrust trial that could affect Apple’s long-standing agreement with Google. Currently, Google pays Apple a hefty $20 billion yearly to retain its position as the default search engine on the Safari browser. A ruling against this arrangement could be a game-changer and open the door for Perplexity AI to step in as an AI-driven alternative.

The ripple effects of this news were evident as Google’s stock dipped following reports of Apple’s intentions, as shared initially by Bloomberg.

Acquiring Perplexity AI could provide a significant advantage for Apple’s artificial intelligence development. The company has yet to fully integrate its AI initiatives across its device ecosystem, with the highly-anticipated enhancements to Siri still largely absent. Leveraging Perplexity AI’s expertise could accelerate progress and reinvigorate Apple’s AI offerings.

Apple’s struggles in AI have allowed competitors like Samsung and Google to steal the spotlight. Savvy consumers who prioritize AI capabilities in their smartphones are increasingly drawn to devices like the Galaxy S25 and Pixel 9, leaving the iPhone 16 trailing behind. In a bid to regain its footing, Apple is reportedly looking to follow Samsung’s lead by exploring the integration of Google’s Gemini AI model into its devices.

Should Apple successfully acquire Perplexity AI, it could reclaim its status as a formidable player in the tech arena, reinvesting in projects like its upcoming smart home hub and AR glasses. While such an acquisition would require substantial investment, it may position Apple for future success in the decades to come.

Apple aims to enhance its artificial intelligence capabilities and catch up with competitors in the tech industry.

If the ongoing antitrust trial affects their current agreement, Apple could lose Google as its default search engine, potentially paving the way for Perplexity AI to fill that role.

Acquiring Perplexity AI could accelerate the development of AI-driven features, lead to improvements in Siri, and support upcoming innovations like smart home technology and AR glasses.