Apple Eyes $14 Billion Perplexity Deal to Break Google’s $20B Stranglehold

In a move that’s turning heads across Silicon Valley, Apple is eyeing its biggest acquisition ever—a whopping $14 billion deal for AI search startup Perplexity. The potential purchase dwarfs Apple’s previous record, the $3 billion Beats acquisition. And yeah, that’s a lot of AirPods revenue.

The timing isn’t random. Google currently pays Apple around $20 billion annually to remain the default search engine on iPhones and Macs. That cozy arrangement is under serious antitrust scrutiny. If regulators kill the deal, Apple needs a backup plan. Fast.

Apple’s competitors aren’t sitting idle either. Samsung‘s already in talks with Perplexity to integrate their AI search into Galaxy phones. Meta and other tech giants are circling the AI search waters too. It’s basically a very expensive game of musical chairs, and nobody wants to be left standing.

Perplexity brings something special to the table – real-time, conversational search that doesn’t just spit out links. It actually answers questions. Imagine Siri that doesn’t make you want to throw your phone across the room. Transformative, right?

Forget links. Get answers. Like Siri, but actually useful.

The acquisition would give Apple in-house search capabilities to embed across Safari, Siri, and even Spotlight. Privacy-focused search that actually works? That’s the Apple dream. The acquisition strategy aligns perfectly with Apple’s focus on delivering privacy-centric consumer experiences.

Negotiations are still early, with no final offer on the table. Both companies are keeping quiet publicly—standard corporate “no comment” stuff. Key Apple executives including Adrian Perica and Eddy Cue are leading the discussions that may not result in an actual bid. Meanwhile, Perplexity’s latest funding round already valued them at $14 billion. Convenient coincidence.

For users, this could mean less reliance on Google and third-party apps for information. For Apple, it’s about controlling more of the ecosystem. Again.

The stakes are clear. Either Apple shells out $14 billion now, or risks watching a key technology slip to competitors while simultaneously losing $20 billion in annual Google revenue. With 92% of business leaders investing in AI capabilities, Apple can’t afford to be left behind in this technological arms race. Some choices just make themselves. Welcome to big tech in 2024—spend big or go home.