Apple eyes Perplexity acquisition? What's at stake for Google, Samsung

Business Standard

5 hours ago

Apple is reportedly exploring a potential acquisition of Perplexity AI, the US-based AI start-up. According to a recent Bloomberg report, Apple executives, including mergers and acquisitions head Adrian Perica, services chief Eddy Cue, and key decision-makers in AI, have held internal discussions about making a bid for the company.
While there has been no confirmation from Apple, Perplexity told Bloomberg, 'We have no knowledge of any current or future M&A discussions involving Perplexity.'
If Apple proceeds, the deal could give it a much-needed boost in AI talent, an established brand in the generative AI space, and a consumer-facing product. However, ongoing deals between Perplexity and other tech companies, notably Samsung and Motorola, could complicate the process. Bloomberg also reported that Meta attempted to buy Perplexity earlier this year.
Here's a breakdown of what an Apple-Perplexity deal could mean for the companies involved:
What Apple stands to gain from the Perplexity AI acquisition?
A Perplexity acquisition would support Apple's efforts to develop its own AI-based search engine, a strategic move amid growing uncertainty around its lucrative deal with Google. Bloomberg reported that Apple currently earns an estimated $20 billion a year by making Google the default search engine in Safari, but that agreement is under scrutiny from US antitrust regulators.
The potential acquisition also reflects Apple's wider push to catch up in the generative AI race. Despite unveiling its Apple Intelligence platform at WWDC 2024, the company remains behind competitors in core features. Siri's planned upgrade was even delayed earlier this year, with a revised rollout now targeted for next spring.
By bringing Perplexity in-house, Apple would not only gain a robust AI product but also absorb a skilled team already working at the forefront of AI-powered search. The acquisition could further accelerate the development of next-gen Apple Intelligence capabilities.
Samsung and Motorola partnerships at risk?
Bloomberg previously reported that Samsung Electronics is close to finalising a major partnership with Perplexity. This would include preloading Perplexity's assistant and app onto Samsung devices and integrating its search technology into Samsung's native web browser. Talks have also involved incorporating Perplexity into Samsung's own voice assistant, Bixby.
Samsung is reportedly aiming to announce these integrations as early as this year, potentially making Perplexity a default assistant option on its upcoming Galaxy S26 series. The South Korean giant is also expected to be a major participant in Perplexity's next funding round.
Motorola already has an active partnership with Perplexity. On select Motorola smartphones, including the Edge 60 Pro, users can choose between Perplexity AI, Google Gemini, and Microsoft Copilot as their default assistant.
While there is no indication yet that these partnerships are under threat, they could present a hurdle if Apple moves ahead with an acquisition.
Bloomberg also noted that Apple is weighing an alternative: partnering with Perplexity rather than acquiring it outright. Such a deal would involve integrating Perplexity's AI search into Safari and possibly into Siri as an additional intelligence layer.
What Apple Perplexity AI Deal could mean for Google
An Apple-Perplexity alliance, whether through acquisition or partnership, would be a clear challenge to Google's dominance on iOS devices. For now, Google Search remains the default on Safari, but a Perplexity-powered alternative could alter the balance of power, particularly if antitrust regulators force changes to the current arrangement.
Separately, Perplexity's growing relationship with Samsung is another potential concern for Google. Although Google's Gemini AI is already integrated into Samsung's Galaxy devices, including being set as the default assistant, Samsung's collaboration with Perplexity suggests a shift toward diversifying its AI offerings.
If Samsung deepens its partnership with Perplexity, it could mark a strategic move away from sole reliance on Google and toward supporting a broader AI ecosystem.