Apple is reportedly considering the acquisition of Perplexity AI. Is Perplexity the Missing Piece in the Search Wars? 🍎🔍

Why the iPhone Giant is Eyeing an AI Search Engine, and What it Means for the Future of Tech

Image courtesy of Cult of Mac

The whispers from Cupertino are turning into a roar: Apple, a company renowned for its closed ecosystem and deliberate pace in emerging tech, is reportedly considering a monumental move into AI-powered search. The potential acquisition of Perplexity AI, or a strategic partnership, signals a seismic shift that could redefine not only how we search but also the very fabric of the tech industry's competitive landscape.

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❓ The Billion-Dollar Question: Why Perplexity?

For years, Apple has comfortably collected billions—an estimated $18 billion in 2021—from Google to remain the default search engine on its iPhones. This lucrative arrangement, however, faces increasing scrutiny amidst ongoing antitrust cases against Google. Enter Perplexity AI, the rising star valued at a reported $14 billion, known for its conversational, summary-based AI search. This isn't just about search; it's about talent, technology, and strategic independence.

Apple's reported internal discussions, led by Adrian Perica (head of M&A) and Eddy Cue (SVP of Services), highlight a dual objective: acquire top-tier AI talent and develop an AI-based search engine. The idea is to integrate Perplexity's cutting-edge capabilities into Siri and Safari, signaling a potential departure from Google's long-standing dominance. Eddy Cue himself, while on the stand for Google's antitrust case, revealed preliminary talks with Perplexity for Safari integration.

💬 Reem’s Take: Apple's interest in Perplexity isn't merely about building a better search engine. It's a proactive defense against regulatory headwinds that could dismantle its multi-billion-dollar deal with Google. Acquiring Perplexity isn't just a tech play; it's an insurance policy.

🔗 The Meta Connection: A Parallel Play in the AI Talent War

Interestingly, Apple isn't the only tech titan that had eyes on Perplexity. Meta too approached Perplexity for a potential takeover before ultimately pouring $14.3 billion into Scale AI. This revelation underscores a fierce, no-holds-barred competition for AI talent and foundational technology across Silicon Valley.

Mark Zuckerberg's aggressive push to bolster Meta's AI efforts, driven by a reported agitation that rivals like OpenAI and Google are ahead, has seen the company go to extreme lengths. We've seen Meta's attempt to acquire Safe Superintelligence Inc. (reportedly valued at $32 billion) and the recruitment of key figures like Alexandr Wang (Scale AI CEO) and Daniel Gross (Safe Superintelligence founder) into Meta's "superintelligence" unit. OpenAI CEO Sam Altman himself claimed Meta offered OpenAI staff "100 million bonuses" to poach them, a testament to the intensity of this AI talent war.

💬 Reem’s Take: The pursuit of Perplexity by both Apple and Meta highlights a critical truth: in the AI race, proprietary data and top-tier engineering talent are the ultimate currencies. The scramble isn't for features, but for the fundamental building blocks of future AI dominance.

💰 The Stakes: Billions, Market Share, and the Future of Search

Should regulators force Apple to terminate its partnership with Google, owning Perplexity would provide a ready-made solution for an AI-based search engine, alleviating a potential multi-billion-dollar revenue hit. Beyond financial implications, this strategic move would position Apple to finally catch up in the generative AI space, an area where it has acknowledged delays (e.g., the revamped Siri, a key component of Apple Intelligence, was recently delayed).

The rise of AI-powered search tools like Perplexity and ChatGPT is already eroding Google's long-held search dominance. A 2025 report indicated that generative AI is already causing a measurable decrease in traditional Google searches on Safari. This shift signifies a profound change in user behavior and a new era for information retrieval.

💬 Reem’s Take: The long-term implications are clear: the AI search engine market share is ripe for disruption. Companies that fail to adapt their search strategies to incorporate generative AI will find themselves increasingly marginalized. This isn't just about market share; it's about relevancy.

✅ Actionable Takeaways: