Investor Briefing: Apple and the Rumors of a Perplexity AI Acquisition

Mark Lagarde
Wed, 09 Jul 2025 16:29:11 +0000
Investor Briefing, Amazon, Apple, Google, Microsoft, Perplexity

Apple’s AI Strategy and Current Challenges

Apple is at the center of intense discussions regarding its artificial intelligence (AI) strategy. While competitors like Google, Microsoft, and Amazon have massively expanded their AI offerings, Apple is increasingly perceived as a laggard. The integration of generative AI into Siri and other services has thus far been sluggish.

Analysts have particularly criticized delays in launching “Apple Intelligence” and the relatively weak AI announcements at this year’s WWDC. Investors and developers expressed disappointment, as Apple continues to focus heavily on on-device AI and lags behind in cloud-based AI solutions.

The result: Apple’s hardware-centric business model makes it difficult to rapidly scale AI features, while competitors have already built comprehensive AI ecosystems. Uncertainty is growing about Apple’s innovative strength and competitiveness in the AI era—putting additional pressure on management to act strategically.

Background: Perplexity AI at a Glance

Perplexity AI was founded in 2022 by experienced AI and machine learning experts and has quickly established itself as one of the most innovative providers in the AI-powered search engine space. The company offers a conversational search engine that uses large language models to deliver precise, source-cited answers. Perplexity is experiencing rapid user growth and now processes around 30 million search queries per day. The company is based in San Francisco, employs about 700 people, and is currently valued at around $14 billion.

Notable investors include Jeff Bezos, Nvidia, and Databricks. Perplexity’s technology is seen as a frontrunner in merging AI and search, which could be especially significant for the further development of voice assistants like Siri.

Analysts’ Opinions on the Potential Acquisition

Pro Arguments (e.g., Wedbush)

Wedbush analysts describe the acquisition of Perplexity as a “no-brainer” for Apple. They argue that Apple could significantly strengthen its AI capabilities and catch up with competitors by acquiring Perplexity. Strategic advantages include integration with Siri and Safari, as well as reducing Apple’s dependence on Google.

Perplexity’s valuation ($14–30 billion) is seen as justified given the potential in the AI market and Apple’s financial strength. Wedbush views the acquisition as a crucial step to secure Apple’s long-term competitiveness in AI and to restore investor confidence. A successful closing could have a positive effect on Apple’s share price.

Critical Voices

Other analysts, such as those at Bank of America, warn about the high costs of the acquisition and potential legal risks, especially regarding copyright disputes involving Perplexity. They point out that Apple could achieve similar progress through partnerships or internal development.

There are doubts as to whether such a large acquisition aligns with Apple’s traditional focus on organic growth and integration. Integrating an external AI platform poses technological and cultural challenges.

Some market observers believe that Apple might instead pursue targeted partnerships with other AI firms like Anthropic or OpenAI to remain flexible in responding to technological developments.

Market Assessment

The stock market has so far reacted cautiously to the rumors. While some investors see the acquisition as an opportunity for an innovation boost, others are skeptical given the high valuation and uncertainties.

Discussions among experts and the public are intense: some call the acquisition a “game changer” for Apple, while others warn of strategic overstretch and integration issues.

Conclusion

The rumors surrounding a potential acquisition of Perplexity AI underscore the urgency with which Apple needs to realign its AI strategy. While Wedbush and other analysts see the acquisition as a logical and necessary step, there are also significant counterarguments regarding cost, risk, and strategic fit. For investors, the situation remains exciting: a successful deal could strengthen Apple’s position in the AI race—but it also involves considerable challenges and uncertainties.

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