Apple May Acquire Startup Led by Indian-Origin CEO: Why Google Should Be Worried

Apple Eyes Perplexity AI in Bid to Break Free from Google Search Deal.

Apple is reportedly exploring a potential acquisition of Perplexity AI, the fast-growing startup led by Indian-origin CEO Arvind Srinivas, in a move that could signal a major shift in its search strategy — and pose a direct challenge to Google.

According to sources cited by Bloomberg, Apple’s M&A chief Adrian Perica, alongside services head Eddy Cue and senior AI executives, have held internal discussions about acquiring the AI search company. While Apple has not made a formal approach to Perplexity yet, the tech giant’s growing interest underscores its urgency to bolster its AI capabilities.

A Strategic Exit from Google?
Apple currently earns an estimated $20 billion a year from Google to keep its search engine as the default on Safari. But with that arrangement now under antitrust scrutiny in the U.S., Apple is considering long-term alternatives — and Perplexity’s AI-powered search engine may be the answer.

Perplexity offers a conversational, real-time search experience by pulling data from across the internet — a direct challenge to Google’s traditional search model. A full acquisition at Perplexity’s current $14 billion valuation would be Apple’s largest-ever deal, far surpassing its $3 billion Beats acquisition in 2014.

Competition Heats Up
Apple isn’t alone in its interest. Meta reportedly tried to acquire Perplexity earlier this year but failed. It later invested heavily in Scale AI, reflecting the tech sector’s race to secure next-gen AI capabilities. Samsung, too, is said to be close to announcing a strategic partnership with Perplexity — potentially complicating Apple’s plans.

While Apple is also weighing a partnership model — potentially integrating Perplexity into Siri or Safari — sources say the company’s AI team has already met Perplexity multiple times in recent months to assess the technology.

Perplexity Responds
Perplexity has denied any ongoing acquisition talks but acknowledged growing industry attention. “It’s no surprise major device makers are interested in enhancing their AI search experiences,” a spokesperson said.

The final decision may hinge on the outcome of the ongoing Google-Apple antitrust case. If the courts disrupt the current search agreement, Apple may move more aggressively toward Perplexity — whether through partnership or outright purchase — as it prepares to rewrite its search future.