Exclusive: Perplexity shuts down Apple acquisition chatter, says no talks underway

AI search startup Perplexity has denied any ongoing merger or acquisition discussions with Apple, pushing back against speculation triggered by a Bloomberg report released earlier today.

“We have no knowledge of any current or future M&A discussions involving Perplexity,” Perplexity told Fortune India, regarding M&A reports by Apple.

“It shouldn’t be a surprise that the best OEMs in the world want to offer the best search and most accurate AI for their users, and that’s Perplexity,” the statement added, regarding discussions about partnering in search and/or evaluating our technology.

Earlier today, a Bloomberg report by Mark Gurman revealed that Apple has held internal discussions about a potential acquisition of artificial intelligence startup Perplexity AI. The move, according to the report, is part of Apple’s broader strategy to strengthen its generative AI capabilities and address possible vulnerabilities stemming from uncertainties surrounding its multi-billion-dollar search partnership with Google.

The conversations are said to be at a preliminary stage and have involved key Apple executives, including mergers and acquisitions chief Adrian Perica, services head Eddy Cue, and senior leaders from the company’s AI division. While no formal offer has been made, Apple is reportedly weighing multiple options as it closely evaluates Perplexity’s technology stack and engineering talent.

The pressure on Apple to fast-track its AI efforts has intensified in recent months, particularly as the U.S. Department of Justice’s antitrust lawsuit against Google threatens the long-standing arrangement that designates Google as the default search engine across Apple devices. This deal is believed to be worth around $20 billion annually to Apple. In anticipation of possible disruption, the Cupertino-based company is exploring alternatives, including building its own AI-powered search engine. A partnership or acquisition of Perplexity—founded by former OpenAI researcher Aravind Srinivas—could potentially form the backbone of that strategic shift.

Perplexity AI, meanwhile, has emerged as one of the most promising players in the AI search category. In May, reports indicated the company was in advanced negotiations to raise $500 million at a $14 billion valuation, with venture capital firm Accel leading the round. Just five months earlier, in December, Perplexity had been valued at $9 billion. According to CNBC, the company is still relatively early in its revenue journey, with less than $100 million in annual recurring income, but its influence and user adoption have grown rapidly.

The startup is positioning itself as a serious contender in the evolving AI search market, challenging industry giants such as Google, Microsoft’s Bing, OpenAI, and Anthropic—each of whom has recently released or upgraded their AI-powered search functionalities. Perplexity’s pitch centres on delivering more accurate, conversational, and ad-free search results powered by large language models, which has drawn interest from both enterprise users and OEMs seeking cutting-edge alternatives to traditional search engines.