Apple Eyes Acquisition of Indian-Origin CEO’s Startup — A Potential Blow to Google

Apple Considers Bid for Perplexity AI in Potential Shake-Up of Search Landscape.

Apple Inc. is exploring a possible acquisition of Perplexity AI, the fast-rising artificial intelligence startup founded by Indian-origin CEO Arvind Srinivas. Known for its real-time, conversational search technology, Perplexity is seen as a promising alternative to traditional search engines — and Apple may see it as a strategic asset as it looks to reduce dependence on Google.

According to sources familiar with the matter, preliminary internal discussions have taken place involving Apple’s head of mergers and acquisitions, Adrian Perica, along with services chief Eddy Cue and senior AI leaders. However, Apple has not yet approached Perplexity’s leadership directly, and talks remain in the exploratory stage.

Google’s Loss, Apple’s Gain?
The move could mark a major pivot for Apple, which currently receives an estimated $20 billion annually from Google for making it the default search engine on Safari. That arrangement, however, is now under scrutiny from U.S. antitrust regulators, prompting Apple to quietly evaluate alternatives to Google’s search monopoly on its devices.

An acquisition of Perplexity could provide Apple with the building blocks of its own AI-powered search engine, potentially integrated into Siri or Safari. The startup’s platform pulls real-time information from across the web to answer queries directly, offering a more dynamic and direct search experience than Google’s traditional link-based results.

Valued at $14 billion after a recent funding round, Perplexity would represent Apple’s largest-ever acquisition, far surpassing the $3 billion it spent to acquire Beats in 2014.

Meta, Samsung Also in the Mix
Apple isn’t the only tech giant eyeing Perplexity. Earlier this year, Meta Platforms Inc. attempted to acquire the company but was unsuccessful. In response, Meta invested $14.3 billion into Scale AI, underlining the intensifying competition among major players in the generative AI space.

Meanwhile, Samsung is reportedly nearing a partnership with Perplexity—an announcement that could complicate Apple’s ambitions, given Samsung’s role as a direct competitor in the global smartphone market.

Beyond full acquisition, Apple is also evaluating strategic partnership options, which could lead to Perplexity’s technology being embedded into existing Apple services.

The Bigger Picture
For Apple, the stakes are high. The company has faced criticism for lagging behind in the generative AI race, even as rivals like Microsoft, Google, and OpenAI roll out advanced models. At the same time, Apple is waiting for the outcome of the ongoing antitrust case that could jeopardize its lucrative deal with Google.

Perplexity, for its part, has publicly denied knowledge of any acquisition talks, though it acknowledges growing interest from major tech firms. “It’s not surprising that leading device makers want to offer the best AI search experience,” a company spokesperson said.

As the global AI race intensifies, Apple’s next move could redefine its role in the search ecosystem—and reshape the power dynamics of the tech industry.