The Apple acquisition talks with Mistral AI and Perplexity AI have sparked major industry buzz, signaling the iPhone maker’s urgent push to catch up in the global artificial intelligence (AI) race. According to reports, Apple has held internal discussions about buying the Paris-based LLM startup Mistral AI and the U.S.-based search engine Perplexity AI. While no official offers have been made, such moves could mark a historic shift in Apple’s acquisition strategy.
Why Apple Is Exploring AI Acquisitions
Apple has traditionally relied on smaller, quiet acquisitions to boost its technology stack. But with Google, OpenAI, Microsoft, and Samsung rapidly scaling their AI ecosystems, Apple is under pressure to accelerate.
- CEO Tim Cook has already admitted Apple is “all in on AI,” highlighting its Apple Intelligence rollout at WWDC 2025.
- Industry analysts say acquiring Perplexity AI and Mistral AI could instantly strengthen Apple’s portfolio, giving Siri, Spotlight, and Safari a much-needed AI upgrade.
Perplexity AI: Apple’s Search Challenger
Perplexity AI is one of the fastest-growing AI search platforms. Its conversational, source-citing answers are often described as the “AI-powered alternative to Google.”
- Valuation: Around $14 billion, potentially making it Apple’s largest-ever acquisition (beating Beats at $3B).
- Strategic Fit: Could boost Siri and reduce Apple’s reliance on Google Search—currently a $20B/year deal for being Safari’s default.
- Analyst Opinion: Wedbush’s Daniel Ives called the move a “no-brainer”, even if Apple spends $20–30B.
- Challenges: Some Apple executives, like Craig Federighi, reportedly prefer building in-house solutions. Perplexity itself has denied knowledge of acquisition talks, leaving the possibility open for a partnership instead of a buyout.
Mistral AI: Europe’s Open-Weight LLM Player
Mistral AI, a French startup founded in 2023, has quickly become a leader in open-weight large language models.
- Why Apple Cares: Mistral’s efficient, privacy-friendly models align with Apple’s on-device AI philosophy.
- Regulatory Hurdle: A U.S. giant like Apple acquiring a French AI champion could trigger EU scrutiny, given Europe’s push for digital sovereignty.
- Likely Outcome: Experts suggest a white-label licensing deal or partial investment might be more realistic than a full acquisition.
Why These Deals Matter for Apple
- AI Catch-Up – Apple has lagged behind Microsoft’s Copilot and Google’s Gemini. Buying Perplexity or Mistral could fast-track innovation.
- Siri 2.0 – Integrating Perplexity’s search capabilities and Mistral’s LLMs could finally make Siri a true AI assistant.
- Search Independence – Apple could lessen reliance on Google, especially as regulators scrutinize that partnership.
- Market Signal – A mega-deal would show Wall Street and consumers that Apple is serious about AI leadership.
Possible Roadblocks
- Cost: A Perplexity acquisition could cost $20–30B—well above Apple’s historic comfort zone.
- Regulation: EU watchdogs may block an Apple–Mistral deal over sovereignty concerns.
- Internal Divide: Some Apple leaders prefer building proprietary AI instead of spending billions externally.
Conclusion
The Apple acquisition talks with Mistral AI and Perplexity AI underline the company’s urgency to strengthen its AI ecosystem. Whether through full buyouts, licensing, or partnerships, Apple’s next moves will define its competitiveness in the AI era. If successful, these deals could transform Siri, reshape search, and secure Apple’s position as a global AI powerhouse.