Apple Weighs AI Acquisitions: Mistral and Perplexity in the Spotlight

Apple still debating Mistral and Perplexity M&A amid looming Google Search shakeup - 9to5Mac

Rumors of Apple considering a Perplexity acquisition refuse to cease. Meanwhile, another AI firm continues to be part of the conversation. Both are mentioned in a new report that paints a picture of Eddy Cue as pro-acquisition despite pushback from other Apple executives. A new report from The Information details the latest on Apple's AI acquisition ambitions. The Information reports that Apple is telling bankers that "it's carrying on with its strategy of focusing on smaller deals in AI," despite Tim Cook recently teasing out that Apple is "very open to M&A that accelerates our roadmap." Still, both Perplexity and French AI firm Mistral remain part of the conversation within Apple, especially as Apple's Google Search deal is at the mercy of an upcoming court decision. The Information cites a "person familiar with his thinking" in reporting that Eddy Cue is most vocal about these sorts of big AI acquisitions. The report claims that Cue previously championed two major M&A deals in the past, specifically Netflix and Tesla, but both were shot down by Tim Cook. Another voice inside the company that is less sold on buying its way out of the AI problem is Craig Federighi. According to the report, Federighi is hesitant on any major AI deal because he believes his team can build their way out of Apple's AI deficit. The report goes on to detail how Apple's acquisition process usually plays out, while noting that the company has a major aversion to overpaying for any company or team. Neither Perplexity nor Mistral AI are new to this discussion, and the report doesn't provide an update on the current thinking behind either acquisition. For its part, Perplexity excels at AI search using models provided by companies like OpenAI and others. Mistral AI is viewed as a smaller player in the space with its own models and expertise at developing new systems. Beyond this report, Apple has recently been said to be holding a competition of sorts between its in-house AI team and third-party model providers when it comes to building the overhauled Siri. Anthropic, OpenAI, and Google are reportedly involved.

Report: Apple Discussed Buying Mistral AI and Perplexity

Services chief Eddy Cue is apparently the most vocal advocate of a deal to buy AI firms to bolster the company's offerings. Cue previously supported propositions of Apple acquiring Netflix and Tesla, both of which Apple CEO Tim Cook turned down. Other executives such as software chief Craig Federighi have reportedly been reluctant to acquire AI startups, believing that Apple can build its own AI technology in-house. Mistral AI is a Paris-based artificial intelligence company founded in 2023 that develops open-weight large language models designed to be smaller, faster, and easier to deploy than many competitors, while still delivering strong performance across reasoning and coding tasks. The company positions itself as a European alternative to American players like OpenAI and Anthropic. Perplexity is a U.S.-based artificial intelligence company that builds an AI-powered search and answer engine combining large language models with real-time web indexing to provide cited, conversational responses. Unlike traditional search engines, it prioritizes transparency by showing sources alongside answers, positioning itself as an alternative to Google for information retrieval. Apple is said to be hesitant to do a deal, which would likely cost billions of dollars. Apple has rarely spent more than a hundred million dollars on an acquision, with Beats at $3 billion and Intel's wireless modem business at $1 billion. If a federal ruling ends the $20 billion deal between Apple and Alphabet that makes Google the default search engine on its devices, the company could be compelled to acquire an AI-powered search startup to fill that gap. For now, Apple apparently told bankers that it plans to continue with its strategy of focusing on smaller deals in AI.

Apple's Potential AI Deals Hampered by Executives' Disagreement: Report

Federighi is reportedly not in favour of spending on AI acquisition Two Apple executives are reportedly at odds over each other's strategy for the company's approach to artificial intelligence (AI). Apple's foray into the AI space has been limited and marred by endless delays. While one reason behind the delay is its late entry into the space, another is its reluctance to invest heavily in technology. As per the report, the Cupertino-based tech giant's cautious approach is due to two senior executives not being able to come to an agreement on whether Apple should acquire an AI startup or not. Apple's Craig Federighi and Eddy Cue Are Reportedly in Disagreement Over AI According to The Information (via AppleInsider), Apple's Senior Vice President of Software Engineering, Craig Federighi, and the company's Senior Vice President of Services, Eddy Cue, have recently argued over their different approach on how the tech giant should strategise to catch up to rivals in the AI space. Cue, who played an instrumental role in Apple's acquisition of Beats in 2014, reportedly holds the belief that making a big-money AI deal is the ideal way for the company to acquire the technology and talent necessary to develop powerful AI tools. On the other hand, Federighi reportedly disagrees with the acquisition approach and believes the tech stack can be developed internally. The conflict between the two senior executives highlights the ongoing struggles Apple has been facing in pushing out consumer-focused AI features. While Cue has reportedly shortlisted Perplexity, the maker of the AI-powered answer engine, and Paris-based Mistral as potential targets for acquisition, the senior leadership is said to be concerned about whether the value of the acquisition can justify the friction of integrating the company. The price of the deal is said to be trivial. When it comes to big money acquisitions, Apple's approach has generally been cautious. With the exception of the Beats acquisition in 2014 and the modem unit of Intel in 2019, the company has stayed away from billion-dollar deals. However, with Meta's aggressive hiring spree and reverse acquihire strategy, and similar push for AI by companies such as Google, OpenAI, and Microsoft, whether a cautious approach will work or not cannot be said conclusively.

Apple's AI Crossroads: Can Mistral or Perplexity Revive Siri's Innovation Edge?

For years, Apple seemed content watching from the sidelines as Google, Microsoft, and even Samsung sprinted ahead, weaving generative AI into everything from search to personal assistants. Siri, once Apple's crown jewel and the original smartphone assistant, now feels like that vintage iPod sitting at the back of a junk drawer, a brilliant pioneer that hasn't aged well, while others leapfrogged ahead with richer, more conversational AI. The urgency is palpable. Reports confirmed by The Information and corroborated elsewhere suggest Apple's leadership is considering a high-stakes shortcut. The company is actively debating acquiring either Paris-based Mistral AI or the Silicon Valley sensation Perplexity. These aren't just moonshots; they're statements that Apple isn't content being an AI follower any longer. Why these two? Each represents a tantalizing, but very different, vision for Apple's future. Mistral AI, Europe's answer to OpenAI, has built its reputation on open, customizable language models for governments and enterprises that chafe at black-box American tech. With backers like Nvidia and a price tag between $6 and $10 billion, Mistral would instantly give Apple world-class modelling talent and help untangle it from dependence on U.S. rivals such as OpenAI and Anthropic. Perplexity, meanwhile, is the disruptor gunning for Google's crown. Imagine a search engine tailored for the TikTok age: real-time answers, context-rich conversations, powered by AI that learns on the fly. With a valuation that could reach $18 billion and supporters like Nvidia and Jeff Bezos, Perplexity could provide Apple with a ready-made, consumer-facing Google alternative, fuelling massive leverage for the iPhone's default search contract. If Apple buys Mistral, it transforms into a self-reliant AI powerhouse, possibly remapping Europe's entire AI scene. If it grabs Perplexity, it could ignite a search war, putting Google's lucrative iPhone deal in jeopardy but thrilling regulators and consumers hungry for real competition. This isn't just about technology; it's a culture clash inside Apple. Eddy Cue, the company's services czar, wants the accelerator floored: buy now, buy big. Craig Federighi, the architect of Apple software, prefers caution, enhancing what Apple already controls, deepening homegrown talent. Tim Cook, the legendary figure at Apple's helm, just signalled something rare: the company is now open to bold, AI-centric acquisitions, even if it means overturning Apple's secretive, incremental M&A traditions. The internal debate is reportedly fierce, and what's at stake is nothing less than Apple's identity in the AI age. What happens next? If Apple sits on its hands, Siri risks sliding deeper into irrelevance, forever trailing Alexa, Google Assistant, and whatever ChatGPT will become. If it chooses action, especially a Perplexity acquisition, the company could become the most disruptive force in search since Google's own debut. No matter which road Apple takes, the signal is clear: the age of AI caution is ending, and Cupertino is finally ready to play for keeps. Watch this space, what happens here may define the next decade of tech innovation, for Apple and for all of us. Also Read: From Conversations to Execution: The Rise of AI Agents Gen Z are the 'Luckiest' kids in History, said Sam Altman AI Won't Take Your Job, But It Will Transform the Way You Work: AMD CEO Lisa Su on Human-AI Collaboration in the Future

Apple eyes Mistral and Perplexity: is Siri set to crush Google and Samsung in AI?

Apple is reportedly exploring acquisitions of two high-profile AI startups, Mistral and Perplexity, signaling a notable shift in its approach to artificial intelligence. Traditionally cautious in mergers, the tech giant appears ready to accelerate its AI roadmap amid rising competition from Google and Microsoft, which have been aggressively advancing AI integration. These internal discussions suggest Apple is seeking innovative solutions to enhance Siri, Safari, and other services, while also reducing reliance on external partners. The potential move reflects growing urgency to remain competitive in the rapidly evolving AI landscape. Apple is reportedly weighing internal discussions about acquiring two prominent AI startups, Mistral and Perplexity, as part of a broader push to strengthen its artificial intelligence capabilities. The tech giant, traditionally cautious in its acquisition strategy, appears to be rethinking its approach amid rising pressure from competitors and the evolving AI landscape. Companies like Google and Microsoft have aggressively integrated AI into their products and services, from search engines to office productivity tools, leaving Apple facing questions about its own innovation pace. With consumer expectations for intelligent assistants and AI-driven services increasing, Apple is exploring ways to catch up without compromising its philosophy of privacy-focused, tightly integrated technology. Apple has historically taken a conservative stance on mergers and acquisitions, especially in emerging tech fields such as AI. The company has preferred to develop new technologies internally rather than rely on large-scale acquisitions. However, recent developments suggest this may be changing. Reports indicate that Apple's leadership is now open to larger acquisitions that could accelerate the company's AI roadmap. The company has faced growing pressure from investors and industry observers to enhance its AI offerings, particularly as rivals introduce increasingly sophisticated AI features. This strategic shift signals that Apple recognizes the need to stay competitive in the rapidly evolving AI market. By considering companies like Mistral and Perplexity, Apple could gain advanced AI technology more quickly than through internal development alone. The discussions underscore a willingness to balance internal innovation with strategic acquisitions to maintain relevance in AI-driven consumer experiences. Mistral is a French AI startup founded in 2023 that has quickly gained recognition for its work on open-weight large language models. These models are designed to be smaller, faster, and more efficient than many competitors, making them easier to deploy across diverse platforms. The company has raised substantial funding and reached a valuation exceeding $2 billion, signaling strong investor confidence in its technology. Mistral's models are considered innovative because they combine high performance with flexibility, allowing integration into products without the massive computational requirements often associated with cutting-edge AI systems. For Apple, acquiring Mistral could provide immediate access to sophisticated language models that enhance virtual assistants like Siri, making them more conversational, context-aware, and capable of handling complex queries. This acquisition would allow Apple to accelerate development while maintaining control over data privacy and user experience, hallmarks of the company's approach to AI. Perplexity is a U.S.-based AI company that has developed an AI-powered search and answer engine. Its platform combines large language models with real-time web indexing to provide responses that are not only conversational but also cited, giving users transparency about where information originates. Unlike traditional search engines, which often prioritize ranking over accuracy or context, Perplexity emphasizes clarity and source attribution. This approach aligns well with Apple's reputation for user trust and privacy, providing a possible alternative to Google's dominance in search. Integrating Perplexity's technology could significantly improve Apple's own search capabilities within Safari, Siri, and other services. It could reduce Apple's reliance on Google, which currently pays the company billions to remain the default search engine on iOS devices. More broadly, Perplexity could provide a foundation for next-generation AI tools that combine reliable information retrieval with natural, human-like interactions. Acquiring Mistral and Perplexity could provide Apple with multiple strategic advantages. For one, Siri and other Apple AI services could become far more capable, handling complex queries with greater nuance and understanding. Mistral's efficient language models could enable faster, more responsive virtual assistants, while Perplexity's AI-driven search could enhance both accuracy and trustworthiness. Additionally, reducing dependence on Google for search could give Apple more autonomy and long-term cost savings. It could also open the door for new AI-driven products and services, from smarter recommendations in apps to more personalized digital experiences. Such acquisitions could also position Apple as a stronger competitor in the AI arms race. By integrating advanced models quickly, Apple can close the innovation gap with rivals and better meet rising consumer expectations for AI-powered experiences across devices. While the potential benefits are clear, acquiring startups like Mistral and Perplexity comes with challenges. Integrating new technologies into Apple's ecosystem can be complex, especially when balancing innovation with the company's strict privacy standards and hardware-software integration requirements. There are also regulatory considerations. Any high-profile acquisition could attract scrutiny from antitrust authorities, particularly given Apple's size and influence in the tech market. Internal alignment is another factor -- Apple has historically been cautious about large-scale acquisitions, and ensuring that new teams and technologies mesh with existing corporate culture will require careful planning. Finally, there is the financial risk. Large acquisitions demand significant investment, and Apple will need to weigh the potential returns against the cost and complexity of integrating these startups effectively. Apple's exploration of Mistral and Perplexity highlights a strategic pivot toward more aggressive AI investments. If successful, these acquisitions could transform Apple's AI capabilities, from making Siri genuinely competitive with Google Assistant to enabling entirely new products powered by AI. However, the path is not without uncertainty. Integration challenges, financial considerations, and regulatory hurdles will all shape the ultimate outcome. Even so, these internal discussions signal that Apple is willing to consider bold moves to maintain its place at the forefront of technology. Q1: Why is Apple considering Mistral and Perplexity acquisitions? Apple wants to enhance AI capabilities in Siri and Safari, reduce reliance on Google, and accelerate its AI roadmap. Q2: How could Mistral and Perplexity help Apple? Mistral provides advanced language models, while Perplexity offers AI-driven search, boosting Apple's AI services and user experience.

Apple internally discussed buying Mistral, Perplexity: Report - The Economic Times

CEO Tim Cook signaled last month that Apple was open to larger AI-related acquisitions to accelerate its roadmap, a shift from its historically conservative M&A posture.Apple has held talks internally about acquiring French AI startup Mistral as well as Perplexity, the Information reported on Tuesday, citing people familiar with the matter. Apple has trailed rivals such as Google and Samsung in terms of roll-out of AI features in its devices. CEO Tim Cook signaled last month that Apple was open to larger AI-related acquisitions to accelerate its roadmap, a shift from its historically conservative M&A posture. Reuters could not immediately verify the report. Apple, Mistral and Perplexity did not immediately respond to Reuters' requests for comment. Nvidia-backed Mistral was valued at more than $6 billion after its Series B funding round last year and the Financial Times reported this month that the French company was in talks to raise $1 billion at a valuation of $10 billion. Executives at the iPhone maker have held internal talks about potentially bidding for Nvidia and Jeff Bezos-backed Perplexity, Bloomberg News reported earlier this year.

Eddy Cue Wants Apple To Acquire AI Companies For Success, But Craig Federighi Stands Firm On Relying Only On Apple's Own Talent

Apple is facing mounting challenges in artificial intelligence as rivals continue to push ahead with faster advancements and stronger products. Despite launching its own Apple Intelligence platform last year, the company has struggled to shed the perception that it is failing and falling behind in the generative AI race. Within Apple's leadership, there are different approaches to how the company can solve its AI problem, which could shape the company's future. According to a new report from The Information, the company's top executives are divided on how to move forward with the aforementioned challenges. Apple's Services head Eddy Cue is reportedly in favor of Apple pursuing major acquisitions in the AI space, something that we have heard before. He believes that buying companies like Perplexity or Mistral could provide Apple with an immediate boost in both search and generative model capabilities, allowing the company to address the gaps in the AI system. Perplexity is a rising rival to Google Search, and it has secured backing from prominent players in the industry, which includes Nvidia and Jeff Bezos. For Eddy Cue, a deal with Perplexity could position Apple as a real contender in the search market. On the flip side, if the company goes ahead with Mistral, it could get resources and expertise in building powerful large language models which could strengthen Apple's generative AI foundation. For Cue, these acquisitions are necessary for Apple to remain competitive in an industry where rivals are moving aggressively. However, not everyone agrees with this strategy, as Craig Federighi, who oversees Apple's software engineering, is said to be confident that Apple's internal teams can build the technology the company so desperately needs. Federighi reportedly prefers to rely on the company's engineering excellence. He favors small acquisitions that can blend seamlessly into Apple's ecosystem rather than spending billions to acquire companies. Federighi's approach is in line with the company's past decisions where it builds in-house technology that integrates seamlessly with the hardware and software the company already controls. The battle of the approaches between Cue and Federighi highlights the strategic crossroads Apple is currently facing with executives pushing the strings in their direction. Possibly, this is the reason why the company has been struggling to keep up with the competition. On one hand, the company risks falling further behind its peers in the industry if it keeps up with its current pace, and on the other hand, it also poses a financial and cultural risk for a company that has always prioritized control and privacy. It remains to be seen how the company will proceed and which direction it will choose, but a blend of both could benefit the company from a general standpoint. Apple needs outside help to push forward, but it also needs custom tailoring to keep everything tight in its ecosystem.

Apple internally discussed buying Mistral, Perplexity, the Information reports

(Reuters) -Apple has held talks internally about acquiring French AI startup Mistral as well as Perplexity, the Information reported on Tuesday, citing people familiar with the matter. Apple has trailed rivals such as Alphabet's Google and Samsung in terms of roll-out of AI features in its devices. CEO Tim Cook signaled last month that Apple was open to larger AI-related acquisitions to accelerate its roadmap, a shift from its historically conservative M&A posture. Reuters could not immediately verify the report. Perplexity, which is backed by Nvidia and Amazon founder Jeff Bezos, said it is unaware of any merger conversations including the company, aside from its own acquisitions. Apple and Mistral did not immediately respond to Reuters' requests for comment. Mistral, backed by Nvidia, was valued at more than $6 billion after its Series B funding round last year and the Financial Times reported this month that the French company was in talks to raise $1 billion at a valuation of $10 billion. Executives at the iPhone maker have held internal talks about potentially bidding for Perplexity, Bloomberg News reported earlier this year. (Reporting by Akash Sriram in Bengaluru; Editing by Leroy Leo and Maju Samuel)

Apple's AI reset: Could Mistral or Perplexity be Apple's shortcut to AI relevance?

Apple's AI reset: Mistral and Perplexity acquisitions debated inside Cupertino Apple's relationship with artificial intelligence has long been defined by restraint. While rivals like Google, Microsoft, and even Samsung rushed to showcase generative AI products, Apple took its time, promising that when it did move, it would be deliberate. But now, the company seems to be confronting a moment of urgency. According to multiple reports, Apple has internally debated acquiring Mistral AI or Perplexity, two fast-rising AI startups, as a way to leapfrog years of lagging behind. At stake is not just Siri's reputation, but Apple's standing in a tech landscape increasingly defined by AI-native experiences. The discussions, reported by The Information and corroborated by other outlets, suggest Apple is exploring whether to buy or partner with one of these startups. Eddy Cue, the company's Services chief, is reportedly pushing hard for such a deal, while Craig Federighi, who heads Software Engineering, prefers to continue developing AI capabilities in-house. CEO Tim Cook, meanwhile, has signaled Apple's openness to "larger AI-related acquisitions" - a notable departure from the company's historically cautious M&A strategy. Apple usually buys smaller firms quietly, folding their tech into its ecosystem. But the AI race has forced a rethink. Also read: Apple considers buying Mistral AI or Perplexity as it struggles to catch up in AI race: Report The two names on Apple's radar represent very different bets: For Apple, acquiring Mistral would bring in-house modeling expertise and potentially reduce dependence on U.S. rivals like OpenAI and Anthropic. Buying Perplexity would give Apple a ready-made alternative to Google Search, a crucial hedge if regulators unravel Apple's lucrative Google default search deal. Apple has often trailed competitors in AI visibility. Siri, once the pioneering voice assistant, is now widely regarded as outdated compared to Alexa, Google Assistant, and chatbots like ChatGPT. Meanwhile, Google is weaving its Gemini AI across Android and search, Microsoft has deeply integrated Copilot into Windows, and Samsung's Galaxy AI features are a marketing centerpiece. Apple's strategy so far has been incremental: enhancing on-device AI for privacy and speed, upgrading Siri in iOS 18, and introducing productivity features for iPhone, iPad, and Mac. But analysts warn that without a bold move, Apple risks becoming a follower in a field where expectations are evolving daily. "Perplexity would be a game changer for Siri," Wedbush analyst Dan Ives argued recently, urging Apple to "rip the band-aid off" and spend big. Others caution that buying such firms could strain Apple's delicate partnerships - particularly its multibillion-dollar Google search deal and entangle it in regulatory challenges. Also read: Apple's new "AI answers" team: A Google rival in the making? For Apple, the choice between buying or building goes to the heart of its identity. The company prides itself on deep integration and control, but the speed of today's AI race is testing that philosophy. Acquiring Mistral would align with Apple's preference for owning the underlying tech stack. Acquiring Perplexity, meanwhile, would be a bolder, consumer-facing bet, transforming how billions of iPhone users search and interact with information. Whether Apple ultimately pulls the trigger or not, the conversations themselves mark a shift: Cupertino is no longer content to sit on the AI sidelines. If Apple buys Mistral, it could reshape Europe's AI ambitions. If it buys Perplexity, it could ignite an all-out search war with Google. If it buys neither, it risks further perception of being a laggard. The only question is whether it will take the shortcut or continue the long, cautious road of building its own way forward.