Apple looking into Perplexity

Apple is looking into buying AI search startup Perplexity, as it scrambles to close the gap with rivals in the generative AI race. Senior execs Eddy Cue and Adrian Perica have reportedly held internal talks about acquiring the company, which recently hit a $14 billion valuation after handling 780 million queries in May.

Founded in 2022 by former OpenAI researcher Aravind Srinivas, Perplexity aims to reimagine internet search with conversational AI and real-time citations. It's growing fast and getting sued just as quickly, but it's clearly caught Apple's attention.

A deal this size would be Apple's largest-ever acquisition, far surpassing the current record of $3 billion paid for Beats in 2014. It's a big move for a company known for small, quiet acquisitions, but with Siri delays, underwhelming AI features at WWDC, and a $20 billion search deal with Google facing antitrust pressure, Apple may need to think bigger.

There's also talk of a Perplexity - Samsung partnership, so Apple may need to act fast, either to acquire it outright or bake it into Safari and Siri.