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
Why Mistral and Perplexity?
The two names on Apple’s radar represent very different bets:
Mistral AI, based in Paris, is a darling of the open-weight large language model movement. Its models are designed for transparency, customization, and enterprise deployment, making it attractive for developers and governments alike. Valued around $6–10 billion, Mistral has Nvidia as a backer and is seen as Europe’s flagship AI startup.
Perplexity, on the other hand, is positioning itself as a search disruptor. Its conversational interface pulls real-time web data to answer questions in a way Google and ChatGPT are still fine-tuning. With a valuation reportedly between $14–18 billion, and investors including Nvidia and Jeff Bezos, Perplexity has momentum – and controversy, facing lawsuits over copyright and content usage.
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.
The AI catch-up game
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?
A fork in the road
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.
Also read: What did Tim Cook say about Apple AI: iPhone maker’s AI strategy revealed
Follow Us
Vyom Ramani
A journalist with a soft spot for tech, games, and things that go beep. While waiting for a delayed metro or rebooting his brain, you’ll find him solving Rubik’s Cubes, bingeing F1, or hunting for the next great snack. View Full Profile