Apple is in talks to acquire Perplexity and Mistral AI
Apple might be gearing up for a major shopping spree in the AI world. According to fresh reports from outlets like The Information and Reuters, the iPhone giant has been chatting internally about possibly acquiring two hot AI startups: Perplexity AI from the US and Mistral AI out of France. It’s not a done deal by any stretch, but it’s got everyone talking about how Apple plans to step up its artificial intelligence efforts. With the company facing heat from competitors who seem miles ahead in AI, this could be a game-changer—or just more speculation.
The talks come at a time when Apple’s been criticized for lagging behind in the AI race. Remember how Siri was revolutionary back in the day? Well, these days it feels a bit dated compared to what ChatGPT or Google’s Gemini can do. CEO Tim Cook even hinted last month during earnings calls that Apple might loosen its wallet for bigger AI-related buys, which is a shift from their usual habit of sticking to smaller acquisitions. Their biggest splash was Beats for $3 billion over a decade ago, so this would be uncharted territory for them.
Rumors Heating Up
It all started bubbling up earlier this year with whispers from Bloomberg about Apple eyeing Perplexity, but now The Information’s dropped details on both companies. Sources close to the matter say Apple execs have held serious discussions, though no formal bids have been made yet. Perplexity, valued at around $14 to $20 billion, is known for its AI-powered search engine that gives quick, cited answers—kinda like a smarter Google. Mistral, on the other hand, is a Paris-based outfit backed by Nvidia and others, sitting at a $6 to $10 billion valuation. They focus on efficient, open-source language models that could run smoothly on devices like iPhones without needing massive cloud power.
Analysts like Wedbush’s Dan Ives are pushing hard for this, saying an acquisition like Perplexity could send Apple’s stock soaring to new highs. He called it a “no-brainer” to avoid what he dubs an AI “BlackBerry moment”—you know, when a tech leader gets left in the dust. On X (formerly Twitter), tech insiders and fans are split: some see it as Apple finally waking up, while others worry about integration headaches.
Why Go After These AI Stars?
Apple’s motivation seems pretty straightforward. They rolled out “Apple Intelligence” features recently, but critics say it’s more catch-up than innovation. Siri upgrades are delayed until 2026, and they’re relying on partnerships like with OpenAI for now. Buying Perplexity or Mistral could give them instant talent and tech to supercharge things.
Here’s a quick rundown of the potential upsides:
- Boost to Search and Siri: Perplexity’s search tech could replace or enhance Apple’s reliance on Google, especially with that $20 billion annual deal under antitrust scrutiny from the US Department of Justice. Imagine Siri answering queries with real-time web pulls and sources—no more vague responses.
- On-Device AI Power: Mistral’s models are lean and privacy-focused, aligning with Apple’s emphasis on running AI locally via the Neural Engine. This could mean faster, more secure features without shipping data to the cloud.
- Talent Injection: Both startups have small, innovative teams. Apple’s been losing AI experts to rivals like Meta, so scooping them up would plug that gap quick.
- Competitive Edge: With Google, Microsoft, and Samsung embedding advanced AI in their ecosystems, Apple needs to act. An acquisition could accelerate rollouts for iOS 19 or the iPhone 17, keeping users loyal.
It’s not just about tech; it’s about optics too. Apple’s stock has dipped about 20% this year amid AI doubts, so news like this could rally investors.
Hurdles in the Way
Of course, it’s not all smooth sailing. Apple’s historically shied away from mega-deals because of cultural clashes and integration risks. Perplexity’s facing lawsuits from publishers like News Corp for allegedly scraping content without permission, which might clash with Apple’s privacy-first image. And Mistral? That’s a whole other can of worms. As a European darling, backed by French government funds, any buyout could face massive regulatory pushback from the EU over “AI sovereignty.” President Macron’s been touting Mistral as a homegrown champ, so expect blocks if things heat up.
Internally, there’s debate raging. Services boss Eddy Cue is all in on bold buys to speed things along, while software chief Craig Federighi thinks Apple’s engineers can build it themselves. It’s classic Apple—perfectionists who prefer control over quick fixes. Plus, the price tags are hefty; we’re talking $20-30 billion combined, which even for cash-rich Apple is a chunk.
On X, users are chiming in with skepticism. One post noted, “France will never let that acquisition happen,” while another quipped that Apple might “ruin” Perplexity’s lean vibe. It’s a fair point; Apple’s known for absorbing tech but sometimes diluting the original spark.
What’s Next for Apple?
As we head into Apple’s iPhone 17 event on September 9, all eyes are on whether these talks turn into action. If the Google antitrust case blows up their search deal, Perplexity could be a lifesaver. Mistral might help with ethical, on-device AI that plays nice with EU regs. But if Apple drags its feet, they risk falling further behind. Remember, Meta and Google have been snapping up AI talent left and right.
In the end, this rumor highlights Apple’s crossroads in AI. They’ve got the ecosystem—billions of devices ready for smarter features—but need the brains to power it. Whether they buy or build, one thing’s clear: the pressure’s on. Investors and fans alike are watching closely; a deal could propel Apple back to the forefront, or inaction might leave them playing catch-up for years.
Word is, no deal’s imminent as of August 30, 2025, but with AI evolving fast, don’t be surprised if headlines drop soon. What do you think—should Apple pull the trigger? It’s a tough call, but exciting times ahead in tech.
