Apple talking to AI startup Perplexity, claims report and why it pulled down Google shares
Apple Inc. is exploring a potential acquisition of
AI startup Perplexity
AI to bolster its artificial intelligence capabilities, according to Bloomberg, citing sources familiar with the matter. The discussions, led by Adrian Perica, Apple's head of mergers and acquisitions, alongside services chief Eddy Cue and key AI decision-makers, are in early stages and may not result in a formal offer, the sources said, speaking anonymously due to the private nature of the talks.
Apple buying Perplexity will be the company's largest-acquisition so far
A deal for Perplexity, recently valued at $14 billion, would mark Apple's largest acquisition ever, surpassing its $3 billion purchase of Beats in 2014. The move could help Apple develop an AI-powered search engine, addressing concerns over its $20 billion annual deal with Google, which faces scrutiny from US antitrust regulators. No discussions have occurred with Perplexity's management, and the startup stated it has 'no knowledge of any current or future M&A discussions.' Apple declined to comment.
Why Apple-Perplexity news pulled down Google stock
Google shares reversed gains and fell nearly 1% in late trading after Bloomberg reported on Apple's Perplexity discussions. The news sparked investor concerns about Google's long-standing dominance in the search market, particularly its lucrative $20 billion annual deal to remain the default search engine on Apple's Safari browser. Apple's senior vice president, Eddy Cue, revealed during Google's antitrust trial that Safari search volumes declined for the first time in April, attributing this to growing user preference for AI-driven search alternatives like Perplexity and ChatGPT. If Apple acquires Perplexity, valued at $14 billion, it could reduce reliance on Google, threatening the latter's search advertising revenue, which accounted for $162 billion of Alphabet's $283 billion in 2022 revenue. The potential loss of this partnership, combined with the U.S. Department of Justice's push to curb Google's search monopoly, heightened market fears. Additionally, Perplexity's 20% month-over-month query growth signals a shift toward AI search, challenging Google's traditional model despite its own AI efforts like Gemini.
Why Apple may be planning to buy Perplexity
Perplexity's real-time, web-based question-answering service could enhance Apple's efforts to compete in generative AI, where it trails rivals. Apple's recent AI offerings, unveiled at its Worldwide Developers Conference, include live translation and a partnership with OpenAI for ChatGPT-based image generation, but a revamped Siri has been delayed until next spring. Acquiring Perplexity could provide Apple with AI talent, a recognized brand, and a consumer product to strengthen its position.
Alternatively, Apple has considered partnering with Perplexity, potentially integrating its technology into Safari and Siri. The companies have met multiple times, with Apple's AI team evaluating Perplexity's technology, signaling interest in a closer relationship.
Meta and Perplexity talks failed
The news follows Meta Platforms Inc.'s failed attempt to acquire Perplexity earlier this year, after which Meta purchased a 49% stake in Scale AI for $14.3 billion. Apple and Meta are also competing for talent, with both companies vying to hire Daniel Gross, co-founder of Safe Superintelligence Inc. and a former Apple acquisition via his startup Cue in 2013. Google shares dipped nearly 1% in late trading after the report.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
30 minutes ago
- Hindustan Times
Why Indian MSMEs must prioritise digital maturity for growth
India's long-term economic vision rests on sustaining a high-growth momentum. A World Bank analysis indicates that India's economy must expand at an average annual rate of 7.8% over the next two decades to achieve high-income status by 2047. The fulcrum of this growth is its 63 million micro, small, and medium enterprises (MSMEs), which make up nearly 30% of GDP and drive 50% of exports. Yet, their potential remains underutilised. The sector remains bifurcated between those leveraging digital infrastructure to scale and compete globally and those falling behind in an increasingly tech-driven marketplace. Digital growth (Representational image) Only 12% of MSMEs use digital tools for strategic decision-making, while most face capital shortages, policy unawareness, and skill gaps. This directly impacts India's growth prospects as these firms operate at lower productivity, struggle with financing, and remain locked out of high-margin, global value chains. While in clear contrast, firms that have embraced digital transformation report sales growth of up to 80%, productivity gains of 40% and greater resilience against economic downturns. The question thus arises: how can India bridge the digital divide for its MSMEs as they seek to integrate into global markets? Globally industrialised economies are putting a pertinent focus on their MSMEs to go digital; Singapore's Productivity Solutions Grant (PSG) covers up to 50% of digital adoption costs for SMEs. Similarly, its SMEs Go Digital initiative offers subsidised access to Artificial Intelligence (AI)-driven tools and training. South Korea raised research and development (R&D) support for strategic technologies from 38% to 50%. Meanwhile, China has aggressively digitised its SME sector through its e-commerce policies, expanding global trade among SMEs by 68%. These examples underscore how digitisation enhances operational scale, cross-border competitiveness, and long-term cost-efficiency. In India, digitally mature MSMEs report a 65% increase in turnover, with 54% seeing higher profits. A Google-KPMG study shows digitally enabled businesses grow at twice the rate of offline firms. More importantly, digitisation reduces overheads, optimises inventory and logistics, improves visibility into customer data, and shortens sales cycles—driving both revenue and resilience. Digital platforms facilitate access to credit, and fintech-backed loans help MSMEs with working capital. Yet, despite these demonstrable benefits, only 57% of small businesses view AI as an opportunity, and fewer have the skills to implement it effectively. Digital platforms reduce paperwork, lower credit processing time, and help MSMEs comply with tax and regulatory norms. Despite the clear value in cost savings, faster turnaround, improved compliance, and expanded customer outreach, structural barriers persist. Cost remains the most cited deterrent to digital adoption, as 30% of MSMEs report high infrastructure costs as a limiting factor, while another 36% cite resistance to adopting new technology. The larger issue is workforce inertia—India's MSME sector has a digital skills deficit, making the transition to technology-driven operations slower. A study by NASSCOM and Meta shows that 65% MSMEs don't adopt technology due to a lack of skills and limited awareness about available tools and resources and an absence of structured support systems that could mentor them. Cybersecurity risks affect 40% of MSMEs, exposing them to fraud and financial threats. Meanwhile, policy awareness remains low—despite multiple government-led digitisation incentives and support. The result is a sector struggling to keep pace in an economy that is increasingly dictated by digital efficiencies. The structural shift required to bridge India's digital divide will demand coordinated intervention. India must implement targeted credit instruments that focus on digital upgradation for these MSMEs and reduce their technological costs, the government is already working towards it with TEAM (Trade Enablement & Marketing Scheme) and Technology Upgradation Schemes. However, to bridge the skill gaps the government should leverage their partnerships with private firms to provide structured training and hands-on tech support. Further the government can absorb ex-practitioners and industry experts in their business facilitation hubs, where MSMEs can receive customized, sector-specific guidance from former entrepreneurs, technology specialists, and financial advisors. Cybersecurity frameworks and awareness campaigns around existing digitalisation incentives must be amplified to bridge the policy communication gap. India's economic future is inextricably tied to the digital evolution of its MSME sector. Those embracing digital transformation will lead India's next wave of economic expansion. The need for proactive, policy-driven intervention has never been more urgent. This article is authored by Anup Wadhawan, former commerce secretary, Government of India and Arvind Singh, founder & chief executive officer, Quest OntheFRONTIER.
Time of India
42 minutes ago
- Time of India
Before investing billions in Scale AI, Facebook-parent Meta talked to Perplexity; ‘two versions' of why the talks failed
Facebook-parent Meta considered acquiring Perplexity AI before its multi-billion-dollar investment in Scale AI , a report claims. This development comes as Apple is also reportedly pursuing an acquisition of the AI startup led by Desi CEO Aravind Srinivas . According to a report by CNBC, sources familiar with the confidential negotiations, who requested anonymity, stated that a deal between Meta and Perplexity AI was never finalised. One individual noted the discussions were "mutually dissolved," while another indicated that Perplexity chose to walk away from the potential acquisition. Meta's move to acquire Perplexity comes amidst its CEO Mark Zuckerberg 's continued push to advance the company's AI capabilities as competition from OpenAI and Google-parent Alphabet grows. How Meta is pushing harder to lead the AI race As per the CNBC report, Zuckerberg is increasingly concerned that competitors are ahead in both core AI models and consumer apps, prompting Meta to pursue top AI talent aggressively. Following a multibillion-dollar investment, Meta now holds a 49% stake in Scale AI, though it has no voting rights. As part of the deal, Scale AI founder Alexandr Wang and a few team members will join Meta. Earlier this year, Meta also attempted to acquire Safe Superintelligence , reportedly valued at $32 billion during an April funding round. Daniel Gross, the CEO of Safe Superintelligence, and former GitHub CEO Nat Friedman will now contribute to Meta's AI projects under Wang. Gross and Friedman also run a venture capital firm, NFDG, in which Meta is expected to acquire a stake as well. Recently, at the 'Uncapped' podcast, OpenAI CEO Sam Altman revealed that Meta had tried to poach OpenAI staff by offering signing bonuses up to $100 million, with even higher annual compensation packages. 'I've heard that Meta thinks of us as their biggest competitor. Their current AI efforts have not worked as well as they have hoped, and I respect being aggressive and continuing to try new things,' Altman said on the podcast. World Music Day 2025: Tech That Changed How We Listen to Music AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
an hour ago
- Time of India
As race for AI startups heats up, Apple, Meta mull Perplexity acquisition
Live Events To stay ahead in the artificial intelligence (AI) race, tech giants such as Apple and Meta are eyeing the acquisition of AI executives have held internal talks about potentially bidding for AI startup Perplexity , Bloomberg News reported on Friday, citing people with knowledge of the report added that discussions are at an early stage, and that the tech giants' executives are yet to approach Perplexity's management."We have no knowledge of any current or future M&A discussions involving Perplexity," Perplexity said in response to a Reuters report further added that Adrian Perica, Apple's head of mergers and acquisitions (M&A), has weighed the idea with services chief Eddy Cue and top AI iPhone maker is reportedly exploring ways to integrate AI-driven search features, such as Perplexity AI, into its Safari browser, potentially moving away from its longstanding partnership with Alphabet's Google continues to dominate the search engine space globally, AI-powered alternatives like Perplexity and ChatGPT are gaining traction, particularly among younger Bloomberg News also reported on Friday that Meta Platforms tried to buy Perplexity earlier this week, the Mark Zuckerberg-led company invested $14.2 billion in Scale AI and roped in its CEO, Alexandr Wang. Wang is set to take a leadership role at a newly established, 50-person research lab at Meta, tasked with creating artificial superintelligence (ASI)—AI systems designed to surpass human developments come days after OpenAI CEO Sam Altman accused Zuckerberg of trying to poach OpenAI's talent , speaking at his brother's podcast, 'Uncapped'.Meta is said to be eyeing other startups as well, including Safe Superintelligence —a $32 billion venture launched by former OpenAI chief scientist Ilya Sutskever just last told CNBC that Meta approached Sutskever earlier this year with an offer to acquire the company, but he reportedly turned it the United States Federal Trade Commission (FTC) has opened an antitrust case against Meta , accusing it of buying rivals to kill competition and build a social media deals were at the centre of the case: Facebook's acquisition of Instagram for $1 billion in 2012 and WhatsApp for $19 billion in 2014.
