To get back into the generative AI race, Apple needs more than a real-time translation tool or the integration of its models into Shortcuts, two new features announced during the last WWDC. The manufacturer is struggling to keep up with the pace set by OpenAI, Meta, and Google. That's why it's hardly surprising to learn that the Apple company is considering acquisitions. And one of the most sought-after startups of the moment is none other than Perplexity.
An injection of AI for Apple
The company has developed an "AI response engine" that poses as a direct competitor to Google and assistants like ChatGPT for documented information searches. You can dig into a topic and get reasoned and sourced answers. Unlike other generative AIs, Perplexity actually emphasizes source transparency.
According to Boomberg, Apple executives have begun to take an interest in Perplexity, including Adrian Perica, the company's head of mergers and acquisitions, and Eddy Cue, its vice president of services. Discussions are still in the preliminary stages, but the idea is gaining ground in Cupertino.
Such a deal would have at least two immediate benefits. The first is that Apple would immediately gain Perplexity's strong thematic talent, bringing in new blood to reinvigorate an AI division mired in Siri-related issues that have caused a serious internal crisis. The second is the search engine itself.
Perplexity could help offset the potential loss of revenue from Google, which pays over $20 billion each year to be the default search engine in Safari. This payout is jeopardized by the US courts, which ruled that Google was abusing its dominant position in the online search sector.
For the moment, nothing has been decided. And if Apple were to launch hostilities, it wouldn't be before the US courts' final decision on the matter. But if it did, it would be the largest acquisition ever attempted by the manufacturer. The largest to date was Beats for $3 billion in 2014.
Perplexity's latest funding round valued the startup at $14 billion. And the company is attracting a lot of interest: Meta reportedly wanted to get its hands on it, before branching out into Scale AI, for which the group acquired 49% of the capital (an investment of 14.3 billion). This will certainly raise the stakes. It also remains to be seen whether regulators will authorize the operation: this type of mega-acquisition is currently viewed with a jaundiced eye.
Source: Bloomberg
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