In June 2025, a remarkable convergence occurred in Silicon Valley: Apple and Meta reportedly showed serious interest in acquiring Perplexity AI, a startup valued around $14 billion. Bloomberg broke the news, revealing that Apple executives—including VP Adrian Perica and services chief Eddy Cue—had initiated internal discussions about a potential bid. Meanwhile, Meta had earlier engaged Perplexity as part of its aggressive acquisition push, even as it placed a $14.8 billion bet on Scale AI.
At face value, this move is curious: why are two trillion-dollar tech giants pursuing a young company with “only” ~700 employees and a mid-size user base? The answer lies in the perfect alignment of Perplexity’s innovation with Apple’s and Meta’s strategic pain points—and broader industry pressures. Below, we unpack the motivations driving this high-stakes pursuit.
Perplexity AI: Redefining Search with Conversation
Launched in late 2022, Perplexity AI quickly rose to ~15 million users by mid-2024. Its promise? A user-friendly, citation-backed conversational search experience designed to “democratize access to knowledge” .
- LLM-agnostic platform: Users can choose between GPT-4.1, Claude, Google’s Gemini, Meta’s own Llama-based Sonar, and more.
- Transparent responses: Results include footnotes citations linking back to sources.
- Multimodal capabilities: Includes text, voice, and image-based query support, as seen in its mobile assistant and browser Comet.
- Rapid feature innovation: Perplexity built search, assistant, mobile apps, browser plug-ins, and enterprise tools in under three years.
This combination of privacy, transparency, and versatility has earned the startup praise as a “credible challenger to Google”.
Apple: Seeking an AI “Jolt” in Search and Siri
Despite being a pioneer with Siri, Apple has lagged behind in the generative AI race. AI developments at WWDC 2025 were understated, while Siri’s major overhaul remains delayed.
Why Perplexity matters for Apple:
- Own AI-powered search: Apple currently earns $15–20 billion annually from its deal with Google to be Safari’s default engine. However, antitrust regulators are challenging that arrangement—and Apple has begun exploring AI search alternatives such as Perplexity, ChatGPT, and Anthropic.
- Talent acquisitio: Perplexity’s founding team—led by Aravind Srinivas—is a rare package of product success and LLM research flair. Apple historically acquires small teams to fill talent gaps (e.g., Beats in 2014, Cue in 2013).
- User-centric integration: Perplexity’s UI echoes Apple’s minimalist and voice‑first design. Seamlessly embedding it into Safari or Siri could dramatically boost Apple Intelligence’s competitiveness.
- Privacy-first design: Perplexity aligns with Apple’s privacy values—offering local processing and secure query handling without monetization through ads.
Strategic implications:
- Apple could potentially dump Google, integrate Perplexity into Safari, and restore control over search UX.
- The move would mark Apple’s biggest-ever acquisition, dwarfing Beats, and shift its M&A comfort zone.
- It also helps address broader Antitrust exposure, showing Apple building rather than merely partnering.
Meta: Fueling an AI Renaissance for Its Platforms
Meta has been aggressively investing in AI: $14.8 billion into Scale AI, hiring Alexandr Wang to lead its “superintelligence” group, and pursuing startups like Safe Superintelligence and Thinking Machines.
Where Perplexity fits into Meta’s world:
- Tighter AI integration across apps: Perplexity’s conversational search engine could power smarter interactions in Instagram, WhatsApp, and Quest devices—moving beyond static feeds.
- Voice, AR, and spatial computing: With its Oakley AI glasses launch and major VR ambitions, Meta needs intuitive voice-AI overlays. Perplexity’s voice and multimodal strengths are ideal.
- Catching up to OpenAI and Google: Llama 4 has received mixed reviews, while Meta’s AI offerings trail competitors. Acquiring Perplexity gives it proven interface tech and user engagement .
- Talent and team: Like Apple, Meta values the founding team—creative, cloud-savvy, research-led. It’s a ready-made “AI dream team”.
Strategic Parallels and Divergences
Though Apple and Meta are united in interest, their long-term goals and cultures differ fundamentally.
| Aspect | Apple | Meta |
| Core focus | Hardware/software integration, user privacy | Social platforms, immersive computing, ad-driven revenue |
| Perplexity use-case | Embed in Safari/Siri to reduce dependence on Google | Integrate across apps to supercharge AI-driven user experiences |
| Acquisition style | Selective, team-focused, minimal acquisitions | Bold, platform-centric, large-scale spending |
| Regulatory angle | Antitrust concerns over Google tie-ups | Timing with past merger scrutiny (Instagram, WhatsApp) |
Both see supercharged AI interfaces as the next battleground—Apple from a search orientation, Meta through social and spatial layers.
Potential Consequences: From Market to Antitrust
For Google:
Rumors triggered a ~1% dip in Google shares, with investor anxiety over Android/default search damage.
For Apple:
- A successful acquisition could end its $20 billion/year dependence on Google, signaling a bold AI pivot .
- But a block by regulators could intensify antitrust scrutiny on Apple’s broader ecosystem.
For Meta:
- A deal could vastly improve Meta AI, enhancing personalization across its massive user base.
- However, regulatory eyes on “AI supergiants” may view the deal as consolidation.
Perplexity’s Position: Small but Powerful
Despite its size, Perplexity embodies what matters most in AI today—adaptive LLM backends, transparent UX, and multi-modal experiences.
Key stats :
- Founded Dec 2022; flagship launched first month
- Over 700 employees
- 780 million queries/month, 20% MoM growth (May 2025)
- Chrome/iOS/Android apps + beta browser Comet
- Citation-backed answers, multimodal queries, enterprise Pro tools
Its growth trajectory and monetization strategies—like publisher revenue sharing launched mid-2024—underscore commercial promise.
Risks and Unknowns
The Cost and Culture Fit
Perplexity’s valuation of ~$14 billion may escalate to ~$18 billion+ in negotiations. Apple has rarely done large deals. Meta can—but its corporate culture might clash with Perplexity’s startup ethos.
Seller’s Intent
Perplexity has not confirmed M&A talks. They may choose independence or partnerships over a full exit.
Regulatory Roadblocks
Both companies face heightened antitrust scrutiny:
- Apple for App Store and now search moves,
- Meta for platform power and AI consolidation. Regulators will weigh market impact carefully.
What If Neither Acquires? The Strategic Pivot Option
Apple hinted at deep partnerships (e.g. Safari integration) as an alternative to acquisition. This gives flexibility—but cedes strategic control to Perplexity.
Meta could also link Perplexity tech to Llama, making their combined AI more compelling than either alone—without acquisition.
Bigger Picture: The Future of Search & AI Frontiers
This interest signals a tectonic shift in how major tech players define their next battleground:
- Search is evolving from static pages to LLM-driven conversations. Whoever masters this interface could own the future of discovery.
- Trust, privacy, and transparency are now key differentiators—Perplexity leads all three.
- Talent matters more than infrastructure. Both Apple and Meta are buying teams, not just features.
- The deal race reflects a broader move: tech giants can no longer rely solely on internal R&D—they need acqui-hiring to keep pace.
Conclusion: A Catalyst Moment for AI, Search, and Tech Strategy
Apple’s and Meta’s interest in Perplexity isn’t a bidding war over a small startup—it’s a high-stakes contest for:
- Search independence and control (Apple),
- AI-enabled user experiences across platforms (Meta),
- Strategic access to rare LLM talent and transparent AI tech.
For Perplexity, the outcome could define the next generation of AI interaction—from browsers and assistants to glasses and VR.
Regardless of who acquires—or if neither does—their interest alone signals where the AI frontier is moving: search as conversation, transparency as trust, and startups as strategic unicorns. At this crossroads, Perplexity’s fate may shape Silicon Valley’s next decade.
