Apple is reportedly in discussions with AI startup Perplexity to acquire the company for an estimated $14 billion deal. If successful, this acquisition would be one of the largest made by Apple since its 2014 purchase of Beat.
Perplexity’s AI search engine allows users to ask follow-up questions and provides a conversational experience, different from traditional search engines. The startup was founded in 2022 by Aravind Srinivas, Denis Yarats, Johnny Ho, and Andy Konwinski.
The potential deal comes as Apple seeks to boost its artificial intelligence capabilities. This acquisition would integrate Perplexity’s AI search engine with Apple’s web browser Safari, potentially competing with Google’s services.
Apple has signed a $20 billion annual deal with Google, making the latter its default search engine for its web browser. However, if this arrangement breaks, it could be a blow to Google’s grip on the global search engine market.
This acquisition would also cast uncertainty on Google’s relationship with Apple. Meta previously attempted to acquire Perplexity but eventually invested $14.3 billion in Scale AI instead.
Perplexity has already made significant moves in India, partnering with Paytm and IIT Madras to promote AI adoption in the country. The company’s CEO, Aravind Srinivas, has expressed support for building India’s own foundational models rather than relying on existing open-source AI models.
Source: https://inc42.com/buzz/apple-considers-buying-ai-startup-perplexity-report