Apple is reportedly considering significant acquisitions in the artificial intelligence (AI) sector as it seeks to enhance its capabilities in a field where competitors like Google and Microsoft-backed OpenAI have established a considerable lead. According to a report from The Information, the company based in Cupertino has had internal discussions about the potential acquisition of AI startups Mistral AI and Perplexity. Apple’s AI framework, known as “Apple Intelligence,” has lagged behind rivals such as Google’s Gemini and OpenAI’s ChatGPT. This gap seems to have led senior executives to assess whether external acquisitions could provide the necessary momentum for Apple.
The report indicates that Eddy Cue, chief of Apple Services, has been one of the most vocal advocates for acquiring an AI company. Cue has a history of supporting bold acquisitions, having previously pushed for Apple to acquire Netflix and Tesla, although these proposals were ultimately turned down by CEO Tim Cook. However, the concept of acquiring an AI firm has not received unanimous backing at Apple. Some executives reportedly believe the company should prioritize developing its own advanced AI systems instead of relying on acquisitions. Mistral AI, one of the companies under consideration, is a French startup recognized for creating open-weight large language models (LLMs).
Established in 2023, it aims to be Europe’s counterpart to U.S.-based AI leaders like OpenAI and Anthropic. Backed by Nvidia, Mistral AI achieved a valuation of $6 billion in its recent funding round. The other potential target, Perplexity, has rapidly emerged as a prominent AI entity worldwide. Founded by former OpenAI scientist Aravind Srinivas, Perplexity is valued at about $18 billion and has investors that include Amazon and Nvidia. Despite ongoing speculation, Perplexity has publicly stated it is unaware of any acquisition proposal from Apple. Acquiring Perplexity would be among the most expensive transactions in Apple’s history, which typically avoids large-scale acquisitions; its notable purchases include Beats for $3 billion and Intel’s modem business for approximately $1 billion.
A move to acquire Perplexity would mark a significant shift from this cautious strategy. Meanwhile, Apple is also reportedly discussing the integration of Google’s Gemini into its AI framework. If these discussions advance, Apple Intelligence could operate on a version of Google’s Gemini model, potentially hosted on Apple’s own servers. Concurrently, Apple has explored partnerships with OpenAI and Anthropic. Currently, Apple’s Siri assistant relies on OpenAI’s ChatGPT model for certain queries. While no definitive decisions have been made, Apple has not dismissed the possibility of intensifying its internal AI initiatives to bridge the gap with its competitors.
As the competition in the AI sector heats up, Apple’s forthcoming actions—whether through acquisitions, partnerships, or internal development—will be closely monitored throughout the industry.