Apple in early talks to acquire AI startup Perplexity

Apple is exploring a potential bid for Perplexity AI, the fast-growing startup aiming to rewire how people search for information online, Bloomberg reported Friday.

The talks are still preliminary. Adrian Perica, Apple’s head of M&A, has reportedly discussed the idea with Eddy Cue and other key AI leaders inside the company. No deal is on the table yet, and it’s unclear if one will materialize, according to people familiar with the matter.

Apple Explores Buying Perplexity AI to Boost AI Talent

Per Bloomberg, Apple executives have been quietly discussing a possible bid for Perplexity AI, as the company looks to strengthen its AI talent and tech stack.

“Apple Inc. executives have held internal discussions about potentially bidding for artificial intelligence startup Perplexity AI, seeking to address the need for more AI talent and technology,” Bloomberg reported.

This comes just weeks after Perplexity was said to be closing a $500 million funding round that would boost its valuation to $14 billion, per the Wall Street Journal. That’s a steep rise from the $9 billion mark it reportedly hit just six months earlier.

Perplexity was founded in 2022 by a team of ex-Google and OpenAI engineers. Instead of serving up a list of links, the platform responds to questions with direct, conversational answers—and cites its sources. The format is simple, fast, and clear, offering a real alternative to traditional search engines.

Perplexity Founder

The approach seems to be working. The company now has over 15 million monthly active users and recently introduced a $20 monthly subscription tier. That paid plan is already generating solid revenue, suggesting users see real value in sticking with it.

Investors have taken notice. Some are reportedly offering valuations as high as $15 billion, even without Perplexity actively raising. So far, the company has kept those unsolicited offers at arm’s length.

Still, not everyone is applauding. Some media outlets have accused the startup of scraping their content without proper credit. The New York Times even sent a cease-and-desist letter. Perplexity has denied wrongdoing, pointing to its use of citations and, more recently, a revenue-sharing model that pays publishers when their content drives ad revenue.

Meanwhile, the broader AI search race is heating up. Google is investing heavily in its Gemini project. OpenAI, which already powers ChatGPT’s popular chatbot, has added live search results for things like sports and stock quotes. Both are going after the same use cases that Perplexity is trying to claim.

But Perplexity’s momentum—with users, investors, and attention from Apple—puts it in rare company. Whether or not Apple makes a move, it’s clear the search wars are entering a new phase.