Apple’s Internal Talks Signal Ambition for AI Leadership
Apple has reportedly held internal discussions about potentially acquiring two fast-growing artificial intelligence startups:
Mistral AI, a French leader in open-weight language models, and
Perplexity, a U.S.-based provider of advanced AI-powered search tools. These deliberations, first reported by The Information and echoed by several news outlets, highlight Apple’s heightened urgency to enhance its AI capabilities and remain competitive with tech giants like Google and Microsoft[1][2][3][5].
Eddy Cue Champions Bold AI Expansion
According to insiders, Eddy Cue, Apple’s senior vice president of services, has emerged as the most enthusiastic proponent for acquiring major AI players. Cue, who previously advocated other large acquisitions, views these startups as pivotal for Apple’s ambition to embed more advanced artificial intelligence into its ecosystem—especially to bolster Siri and Apple's broader AI-powered offerings. Other senior Apple executives reportedly remain more cautious, favoring the company’s tradition of building or acquiring smaller-scale technology rather than pursuing multi-billion-dollar deals[1][3].
About Mistral AI and Perplexity
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Mistral AI was founded in Paris in 2023 and quickly gained prominence by developing open-source large language models that are both smaller and faster to deploy than many leading U.S. rivals, while excelling in complex reasoning and coding tasks. The startup has raised over $600 million, currently valued above $2 billion, and positions itself as Europe’s answer to OpenAI and Anthropic[1][2][3].
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Perplexity specializes in AI-driven search and question-answering tools. Its platform combines extensive large language models with real-time indexing of the web, allowing users to obtain cited, conversational answers. Perplexity aims to challenge traditional search engines like Google by prioritizing transparency and information accuracy[1][3].
Apple Adopts Cautious Approach Amidst Industry Investment Boom
Apple’s hesitance to enter large-scale acquisitions stands in contrast to competitors like Microsoft, Amazon, and Google, all of which have spent billions on AI investments and partnerships in recent years. While Apple has acquired several smaller AI startups in 2025 to help expand its in-house capabilities, formal offers for Mistral or Perplexity have not materialized. The company has rarely exceeded $1 billion in previous deals, with only a few major acquisitions like Beats ($3 billion) and Intel’s wireless modem business ($1 billion) bucking the trend[2][3].
Impact and Potential Industry Shifts
The internal discussions are seen as significant given the changing AI landscape and evolving legal environment. If a federal ruling were to affect the lucrative deal that keeps Google as the default search engine on Apple devices, Apple might feel pressure to more aggressively pursue an alternative, such as acquiring a next-generation AI-powered search provider like Perplexity[3]. For now, Apple continues to prioritize smaller acquisitions, but the growing urgency within its leadership signals that a strategic pivot could still occur.
Broader AI Market Dynamics
The global AI market is expanding rapidly, having surpassed $200 billion in valuation in 2023 with robust growth projected through the coming decade[4]. Apple’s internal deliberations reflect the fierce industry competition for talent and AI technology as companies race to shape the next era of intelligent consumer devices and services.
