Apple in early talks to accumulate AI startup Perplexity

Apple is exploring a possible bid for Perplexity AI, the fast-growing startup aiming to rewire how folks seek for data on-line, Bloomberg reported Friday.

The talks are nonetheless preliminary. Adrian Perica, Apple’s head of M&A, has reportedly mentioned the thought with Eddy Cue and different key AI leaders inside the corporate. No deal is on the desk but, and it’s unclear if one will materialize, in keeping with folks acquainted with the matter.

Apple Explores Shopping for Perplexity AI to Increase AI Expertise

Per Bloomberg, Apple executives have been quietly discussing a potential bid for Perplexity AI, as the corporate seems to strengthen its AI expertise and tech stack.

“Apple Inc. executives have held inner discussions about doubtlessly bidding for synthetic intelligence startup Perplexity AI, looking for to deal with the necessity for extra AI expertise and expertise,” Bloomberg reported.

This comes simply weeks after Perplexity was mentioned to be closing a $500 million funding round that might increase its valuation to $14 billion, per the Wall Avenue Journal. That’s a steep rise from the $9 billion mark it reportedly hit simply six months earlier.

Perplexity was based in 2022 by a staff of ex-Google and OpenAI engineers. As an alternative of serving up a listing of hyperlinks, the platform responds to questions with direct, conversational solutions—and cites its sources. The format is easy, quick, and clear, providing an actual different to conventional serps.

Perplexity Founder

The method appears to be working. The corporate now has over 15 million month-to-month lively customers and just lately launched a $20 month-to-month subscription tier. That paid plan is already producing strong income, suggesting customers see actual worth in sticking with it.

Buyers have taken discover. Some are reportedly providing valuations as excessive as $15 billion, even with out Perplexity actively elevating. Thus far, the corporate has saved these unsolicited provides at arm’s size.

Nonetheless, not everyone seems to be applauding. Some media shops have accused the startup of scraping their content material with out correct credit score. The New York Instances even despatched a cease-and-desist letter. Perplexity has denied wrongdoing, pointing to its use of citations and, extra just lately, a revenue-sharing mannequin that pays publishers when their content material drives advert income.

In the meantime, the broader AI search race is heating up. Google is investing closely in its Gemini challenge. OpenAI, which already powers ChatGPT’s in style chatbot, has added stay search outcomes for issues like sports activities and inventory quotes. Each are going after the identical use circumstances that Perplexity is making an attempt to assert.

However Perplexity’s momentum—with customers, traders, and a spotlight from Apple—places it in uncommon firm. Whether or not or not Apple makes a transfer, it’s clear the search wars are coming into a brand new part.