Could Google DISAPPEAR from our iPhones? #shorts

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Perplexity is far from being as famous as OpenAI, but is gradually making a name for itself in the tech ecosystem. The "AI search engine," which performs dozens of searches in seconds and summarizes them with an LLM, is acclaimed by its users. It was the first to bet on reinventing online search, long before OpenAI (ChatGPT Search) or Google (AI Mode) entered the field.

According to Bloomberg, Apple is actively considering opening its checkbook to make a major acquisition in the generative AI sector. The company isn't known for spending too much (its biggest acquisition was Beats, for $3 billion), but reportedly considers its lack of progress with Apple Intelligence too significant to pass up this gamble. Perplexity is said to be its primary target, while the startup is reportedly looking to sell itself. Can the merger work?

In its article published on June 21, 2025, Bloomberg reports that Apple executives are currently discussing an initial acquisition offer for Perplexity. Adrian Perica, the head of acquisitions in Cupertino, reportedly sees Perplexity as a way to strengthen its position in AI, but also to prepare for the possibility of a breach of its search contract with Google. Apple, which has never launched a search engine, could use Perplexity to enter this field.

At the time of writing, Bloomberg claims that Apple is the only one considering this acquisition. The company has not initiated contact with Perplexity, meaning the deal could never go beyond the brains of Cupertino's accountants. Perplexity is reportedly valued at $14 billion, which could make this acquisition the largest in Apple's history. This condition makes it unlikely today: Apple doesn't like to acquire companies that are already overvalued. Bloomberg adds that Meta also wanted to acquire Perplexity, before changing its mind about Scale AI.

According to Bloomberg, other options are also on the table. Apple also reportedly met with Mira Murati, former number two at OpenAI who left to create Thinking Machines Lab, to discuss a merger. Another option would be to sign a partnership with Perplexity, as with ChatGPT, without acquiring it.

Two important questions remain to be answered: why would Apple need Perplexity? And what would Perplexity gain from being absorbed by a giant while it is gaining popularity and multiplying partnerships (Motorola and Samsung in particular)?

For Apple, the acquisition of Perplexity would above all be a powerful symbol. It would allow the brand to improve its voice assistant, integrate an online/local search system already appreciated by users, develop new tools within its ecosystem (Perplexity can generate mini-apps or reports), recruit talented engineers, and potentially prepare for the post-Google era. Apple could be tempted to develop its own search engine using Perplexity's work.

For Perplexity, the stakes are primarily financial. Don't be fooled by the company's highly positive publicity: Perplexity is losing a lot of money and knows that OpenAI and Google will eventually crush it. With Apple, the startup would make money and secure a future for its teams. As a bonus, its work would be pre-installed on billions of devices.

On paper, a deal between Apple and Perplexity looks like a win-win situation. There's only one point that's wrong (and not a minor one): Perplexity doesn't manufacture its own models. The company built the web index that crawls the internet, extracts results, and sends them to an LLM, but offers a choice between GPT (OpenAI), Claude (Anthropic), or Grok (xAI). Its only designs are Sonar models, but they are designed for speed, not complex tasks. Apple, in the event of a Perplexity acquisition, is expected to continue creating its own Apple Intelligence models.