Meta and Apple eyed AI search startup Perplexity for acquisition talks this spring. Neither deal went through.
Meta held talks with Perplexity in late April or early May, but no deal was reached, sources told Bloomberg and The Information. Apple also had early-stage internal discussions, Bloomberg reported.
Perplexity declined to comment on Meta talks and said it has no knowledge of Apple’s discussions. 
“We have no knowledge of any current or future M&A discussions involving Perplexity.”
Jesse Dwyer, head of communications for Perplexity
Meta also refused to comment, and Apple did not respond to CNN’s request.
Perplexity launched in December 2022. It’s an AI-powered search tool that summarizes answers and links to sources. It offers quick and pro search modes, with the pro tier paid at $20/month.
The startup also provides more AI features like file Q&A, project help, image generation, and is building an AI browser called Comet.
Perplexity faces stiff competition from ChatGPT, which led AI chatbot downloads in Q3 2024. The BBC and Dow Jones sued Perplexity for allegedly using content without permission.
Apple and Meta want stronger AI offerings. Apple is working on AI updates for iPhone and potentially an AI search engine for Safari, which currently defaults to Google under a billion-dollar deal now facing antitrust scrutiny.
Meta has been aggressively pursuing AI talent, offering $100 million packages and invested heavily in Scale AI. But it’s still behind in some AI rollouts and handling of user data privacy.
A Perplexity acquisition would boost Apple and Meta’s AI portfolios as they chase Google and OpenAI. But with talks stalled, the startups and tech giants are watching closely.
“Apple needs to be relevant here,”
Ben Bajarin, CEO of Creative Strategies
