Apple is reportedly exploring major acquisitions in the artificial intelligence (AI) sector as it looks to accelerate its progress in a space where rivals like Google and Microsoft-backed OpenAI are already miles ahead. According to a report by The Information, the Cupertino-based tech giant has internally discussed the possibility of buying AI startups Mistral AI and Perplexity.
Apple’s own AI framework, branded as “Apple Intelligence,” has so far lagged behind competitors such as Google’s Gemini and OpenAI’s ChatGPT. This shortfall appears to have prompted senior executives to evaluate whether an external acquisition could give Apple the boost it needs.
The report suggests that Apple Services chief Eddy Cue has been among the strongest proponents of acquiring an AI company. Cue has a long history of advocating bold acquisitions. In the past, he reportedly pushed for Apple to buy Netflix and Tesla—proposals that were ultimately rejected by CEO Tim Cook.
However, the idea of taking over an AI firm has not gained unanimous support within Apple. Several executives reportedly believe that the company should focus on building its own advanced AI systems rather than depending on external acquisitions.
Mistral AI, one of the companies Apple is said to have considered, is a French startup known for developing open-weight large language models (LLMs). Founded in 2023, the firm positions itself as Europe’s answer to U.S.-based AI heavyweights like OpenAI and Anthropic. With Nvidia’s backing, Mistral AI recently reached a valuation of $6 billion in its latest funding round.
The other potential candidate, Perplexity, has quickly grown into one of the most recognized AI players globally. Founded by former OpenAI scientist Aravind Srinivas, Perplexity is valued at around $18 billion and counts Amazon and Nvidia among its investors. Despite the speculation, Perplexity has publicly stated that it is not aware of any acquisition offer from Apple.
Acquiring a firm like Perplexity would be one of the costliest deals in Apple’s history. The company traditionally avoids large-scale acquisitions, with its most notable purchases being Beats for $3 billion and Intel’s modem business for about $1 billion. Any move to acquire Perplexity would represent a significant departure from that cautious approach.
Meanwhile, Apple is also said to be in talks with Google about integrating Gemini into its AI framework. If the discussions move forward, Apple Intelligence could soon run on a version of Google’s Gemini model, potentially hosted on Apple’s own servers. At the same time, Apple has considered collaborating with OpenAI and Anthropic.
Currently, Apple’s Siri assistant continues to rely on OpenAI’s ChatGPT model for handling some queries. While no firm decisions have been made, Apple has not ruled out doubling down on its internal AI efforts to close the gap with its competitors.
As the AI race intensifies, Apple’s next move—whether through acquisition, partnership, or internal development—will be closely watched across the industry.