Apple Inc., long known for its tight-lipped product development and preference for small-scale acquisitions, may be preparing to take an unusually bold leap into the world of artificial intelligence by acquiring the red-hot startup, Perplexity AI.

A Shift in Strategy?

According to reporting by Bloomberg’s Mark Gurman, Apple is considering a purchase of Perplexity—a move that would signal a dramatic departure from its traditional M&A playbook. Historically, Apple has acquired small, focused teams to bolster internal innovation, with its largest acquisition to date being the $3 billion Beats deal in 2014. In total, Apple has completed only three deals worth $1 billion or more in its entire history.

But with generative AI reshaping the tech landscape, that cautious approach may no longer suffice. Industry leaders like OpenAI, Google, Meta, and Anthropic have seized the spotlight with lightning-fast advancements in large language models (LLMs) and AI-powered tools. Apple, in contrast, has remained relatively quiet—its latest AI announcement at WWDC 2025, branded “Apple Intelligence,” was seen by many as underwhelming and overly conservative.

A Lifeline Named Perplexity

Enter Perplexity, an AI-powered search startup that has quickly become a favorite among early adopters for its clean interface, accurate responses, and real-time information delivery. Multiple sources, including Bloomberg, confirm that Apple’s M&A chief Adrian Perica has held internal meetings with Eddy Cue and Apple’s AI leadership about the potential acquisition. Moreover, several rounds of talks have already taken place between Apple and Perplexity in recent months.

The potential motivations are clear:

  • Revitalize Siri: Perplexity’s technology and team could help Apple reinvent Siri, a virtual assistant that has fallen far behind its peers.

  • Reduce Google Dependency: Apple pays Google up to $18 billion annually to remain the iPhone’s default search provider. Perplexity could offer a strategic alternative as regulators scrutinize that arrangement.

  • Inject AI Talent: Perplexity brings not only advanced LLM capabilities but also a nimble team that could act as a spark plug for Apple’s AI resurgence.

A Moment of Reckoning

Justin Gerrard, a tech growth strategist and former founder, calls this a “make or break” moment for Apple. “Apple’s current AI pace isn’t just slow, it’s dangerously off-pace,” he writes. “They’ve watched smaller teams build category-defining tools while protecting their legacy systems.”

Gerrard argues that Apple’s AI stagnation is a textbook case of the innovator’s dilemma—where the once-disruptive giant now hesitates to cannibalize its own legacy in pursuit of new frontiers. A Perplexity acquisition, he believes, is not just about closing the gap but about regaining relevance in the AI race.

Looking Ahead

Whether Apple will actually pull the trigger remains uncertain. An acquisition of this scale would be rare—and risky—for a company that prides itself on tight integration and internal control. But with the AI revolution accelerating and consumer expectations rising, Apple may have no choice but to break its mold.

For now, all eyes are on Cupertino. If Apple wants to lead the next era of computing, it might need to buy the future—before it’s too late.