Tech giant Apple announces major investment in artificial intelligence, aiming to rival ChatGPT and Google, potentially focusing on this initial area of development
Apple is reportedly considering a strategic move to acquire Perplexity AI, a company valued at around $14 billion, in a bid to accelerate its AI development and catch up with competitors like Google and ChatGPT [1][2][4].
According to a Bloomberg report, Apple's head of M&A, Adrian Perica, has shown interest in Perplexity. The acquisition talks were first reported in July 2025, with Apple executives acknowledging the need to speed up AI progress [2][3].
Perplexity AI is known for its innovations such as citing sources in AI responses and its recent launch of an AI-powered web browser, Comet [1]. Analysts suggest that acquiring Perplexity could help Apple address its lagging AI technologies, despite potential high costs and privacy challenges [1].
If the deal goes through, it would be one of Apple's largest-ever acquisitions, significantly bigger than its $3 billion Beats purchase in 2014 [1][4]. Apple would need to ensure Perplexity’s AI systems align with its strong privacy standards, potentially requiring new secure architectures [1].
Apple's AI capabilities have been lagging behind those of Google, OpenAI, Microsoft, and others in implementing AI solutions into its products [5]. The acquisition of Perplexity could greatly accelerate the development of a more effective Siri, as Apple's planned AI revamp for its assistant has been pushed into 2026 [6].
Tim Cook, Apple's CEO, has expressed his intention to "significantly grow our investments" in AI [7]. This potential deal marks a clear strategic shift for Apple in AI development, with internal discussions underway and CEO Cook openly supportive of such acquisitions.
It's worth noting that Apple recently exceeded Wall Street expectations in its latest earnings call [8]. Meanwhile, Microsoft has reached a $4 trillion valuation, largely due to Azure and AI [9], and Meta has paid $14.3 billion for a 49% stake in Scale AI, a San Francisco data annotation company [10].
As Apple continues to make strides in AI development, it's clear that the company is committed to staying competitive in the rapidly evolving tech landscape.
[1] Bloomberg: Apple in Talks to Buy Perplexity AI, Valued at $14 Billion [2] The Verge: Apple is reportedly in talks to acquire Perplexity AI [3] CNET: Apple reportedly in talks to buy Perplexity AI [4] Business Insider: Apple reportedly in talks to buy Perplexity AI, a startup that could help it catch up to Google and ChatGPT [5] The Information: Apple is falling behind in AI [6] MacRumors: Apple's AI revamp for Siri pushed back to 2026 [7] Apple Insider: Tim Cook says Apple will significantly grow its investments in AI [8] Apple Insider: Apple exceeds Wall Street expectations in latest earnings call [9] Bloomberg: Microsoft Hits $4 Trillion Market Value as Tech Giants Rally [10] The Verge: Meta has paid $14.3 billion for a 49% stake in Scale AI
- The potential acquisition of Perplexity AI by Apple could significantly boost Apple's business operations in the technology sector, particularly in the area of artificial-intelligence, as this deal may help Apple's AI development catch up with competitors like Google and ChatGPT.
- If the acquisition is successful, Apple, known for its strong focus on privacy, would need to ensure that Perplexity's AI systems align with its privacy standards, possibly requiring the development of new secure architectures, demonstrating Apple's continued commitment to finance and innovation in the technology and artificial-intelligence business.
