Apple may be eyeing major AI acquisitions. A new report: Apple discussed buying Mistral AI and Perplexity, sparking conversations about whether the company is preparing for a bigger play in artificial intelligence. Sources suggest that Apple executives debated these deals internally, weighing the benefits of buying versus building AI technology in-house.
Why Apple Looked at Mistral AI and Perplexity
Eddy Cue, Apple’s services chief, is reportedly pushing hard for the company to secure its place in the AI race. Cue has a history of championing bold acquisitions, previously supporting the idea of Apple buying Netflix and Tesla—though CEO Tim Cook rejected those moves. On the other side, Craig Federighi and other leaders believe Apple’s own AI teams can deliver what the company needs without billion-dollar purchases.
What Makes Mistral AI Stand Out
Mistral AI, founded in 2023 in Paris, develops open-weight large language models designed to be smaller, faster, and easier to deploy than many competitors. Despite their compact size, the models perform well in reasoning and coding tasks. Mistral positions itself as Europe’s answer to U.S.-based giants like OpenAI and Anthropic, offering governments and businesses a local AI alternative.
Perplexity: The Google Alternative?
Perplexity, based in the U.S., has built an AI-powered search and answer engine that feels like a mix between a chatbot and a search tool. Unlike Google, Perplexity emphasizes transparency by citing sources directly alongside its responses. For Apple, acquiring such a company could be a game-changer—especially if its $20 billion deal with Google to remain the default iPhone search engine falls through.
Apple’s History with Big Acquisitions
While the idea is intriguing, Apple’s track record suggests hesitation. The company rarely spends billions on acquisitions, with only a handful of exceptions like the $3 billion Beats deal and Intel’s $1 billion modem business purchase. Most of Apple’s AI strategy so far has relied on smaller, targeted acquisitions to quietly strengthen its technology stack.
Could Apple Really Make the Leap?
If regulators dismantle the Google search deal, Apple may have little choice but to rethink its strategy. Owning a company like Perplexity could secure its independence in search, while acquiring Mistral AI would give it an edge in AI infrastructure. For now, reports indicate Apple is sticking to its smaller-scale AI investments, but the possibility of a blockbuster deal remains on the table.
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