Apple Eyes Perplexity AI Acquisition Amidst Search Engine Push

Apple Inc. (NASDAQ:AAPL) is one of the best Fortune 500 stocks to buy according to billionaires. On June 21, Apple executives held internal discussions regarding a potential acquisition of the AI startup Perplexity. These talks are in an early stage and may not result in a formal offer, as Apple has not yet approached Perplexity’s management about a bid.

Apple’s interest in Perplexity comes from a need to enhance its AI talent and technology, particularly in developing an AI-based search engine. This is partly in response to the potential loss of its long-standing arrangement with Google, which makes Google the default search engine on Apple devices and generates an estimated $20 billion annually for Apple.

Apple Eyes Perplexity AI Acquisition Amidst Search Engine Push

A wide view of an Apple store, showing the range of products the company offers.

The partnership is currently under scrutiny from US antitrust enforcers. An acquisition of Perplexity could also provide Apple with a known AI brand and a consumer product, potentially aiding future recruiting efforts in the competitive AI landscape. Perplexity recently completed an investment round that valued the company at $14 billion. An acquisition at or near this valuation would represent Apple’s largest acquisition to date, surpassing its previous record of the $3 billion takeover of Beats in 2014.

Apple Inc. (NASDAQ:AAPL) designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. Perplexity is known for its AI-based search engine that provides real-time answers using information from the web.

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Disclosure: None. This article is originally published at Insider Monkey.