A young AI startup named Perplexity is suddenly at the center of big tech’s attention—and that’s saying something when the companies watching are Meta and Apple.

According to reports from Bloomberg and The Information, Meta held acquisition talks with Perplexity in late April or early May. While no deal was reached, the discussions signal just how serious Meta is about staying competitive in the AI race. Apple, too, has reportedly had internal conversations about acquiring the company, though those talks are said to be early and exploratory.

Neither Meta nor Apple offered public comments, and Perplexity’s head of communications, Jesse Dwyer, told CNN the company has “no knowledge of any current or future M&A discussions.”

So, what exactly is Perplexity—and why are tech giants circling?

What is Perplexity?

Founded in 2022, Perplexity is a new kind of search engine that uses artificial intelligence to scan the web and serve up clean, summarized answers—alongside clickable source links for transparency. Think of it like Google Search crossed with a chatbot, but more focused on accuracy and explainability.

Perplexity offers two modes:

• Quick Search for fast answers
• Pro Search for deeper research (limited to three uses per day on the free plan)

Like ChatGPT and other AI tools, Perplexity isn’t just about answering questions. Users can also upload files, generate images, plan trips, and curate content based on interests. Many of these more advanced features are part of a $20/month premium plan, which also unlocks unlimited pro searches, more AI models, and enhanced project tools.

The company is also developing its own web browser, Comet, which hints at broader ambitions beyond search.

Why Are Meta and Apple Interested?

Both Meta and Apple are playing catch-up in the AI space—and Perplexity could help close the gap.

Apple’s AI Catch-Up

At its June developer conference, Apple unveiled AI-powered features like smarter emoji and live language translation. But its flagship voice assistant, Siri, still hasn’t been fully revamped despite an announcement more than a year ago.

Behind the scenes, Apple is also weighing alternatives to Google, which currently pays billions to remain the default search engine in Safari. That deal is under fire in an antitrust case brought by the Justice Department—raising the stakes for Apple to find or build its own search solution. Acquiring Perplexity could offer a strong foundation.

Apple already partners with OpenAI and Google to enhance iPhone features, but as analyst Ben Bajarin put it to CNN, “Apple needs to be relevant here. The fact that they don’t have a lot to show for their efforts is what gives most people concern.”

Meta’s AI Talent Hunt

Meta has been aggressive in its AI push, investing heavily and offering eye-popping pay packages—reportedly up to $100 million—to lure top talent. CEO Mark Zuckerberg sees AI as central to Meta’s future, across products like Instagram, WhatsApp, and its line of Ray-Ban smart glasses.

In addition to courting Perplexity, Meta recently invested in Scale AI, a data-labeling startup now valued at over $29 billion, and even brought on its founder Alexandr Wang.

While Meta’s open-source Llama models are widely used by developers, the company has faced setbacks too. It delayed the release of its next-gen Llama model, and its new standalone AI app raised privacy concerns after some “private” user queries were found to be public.

But There’s a Catch: Content Controversies

Perplexity’s rise hasn’t been without drama. The BBC recently threatened legal action, accusing the AI tool of scraping its content without permission. Media giants like Dow Jones and the New York Post have also sued the startup, alleging copyright infringement and traffic theft.

This issue—how AI models use and credit content—remains one of the biggest unresolved debates in the AI world, and one that could shape how Perplexity grows, partners, or gets acquired.

The Bottom Line

Whether or not Meta or Apple ultimately buys Perplexity, their interest alone speaks volumes. As AI continues to redefine how we search, learn, and communicate, companies that can’t keep up risk being left behind.

And with search being a key battleground, startups like Perplexity may find themselves in high demand—either as partners, tools, or billion-dollar acquisitions.

Source: CNN – What is Perplexity, the AI startup said to be catching Meta and Apple’s attention

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The way we “Google” something—typing in keywords and scrolling through a list of links—is about to change dramatically. On Tuesday, Google unveiled a suite of updates that could transform its iconic search engine into a smarter, more personalized digital assistant.

From Keywords to Digital Agents

Google’s vision moves far beyond the traditional search box. Instead of just delivering links and snippets, the company wants its search engine to act like a “digital agent” that understands your real-world context, preferences, and surroundings to provide precise answers. This marks a major shift in how we find information online, driven by artificial intelligence.

Google’s CEO Sundar Pichai described the moment as a new era for AI: “We are now entering a new phase of the AI platform shift, where decades of research are now becoming reality for people, businesses, and communities all over the world.”

Introducing AI Mode

One of the biggest announcements is the expansion of “AI Mode” in the Google app, now available to all U.S. users. Unlike traditional search, AI Mode breaks down questions into subtopics and performs multiple related searches to deliver detailed, tailored answers.

Soon, AI Mode will personalize responses even more by using your search history and integrating with other Google apps like Gmail.

Two Game-Changing Features Coming Soon

Google is also rolling out two exciting new AI-powered ways to search:

• Task Automation: Powered by Project Mariner, this feature can handle complex, multi-step tasks for you. For example, you might ask, “Find two affordable tickets for this Sunday’s Reds game,” and Google will search, compare prices, fill out purchase forms, and present options—all automatically.
• Live Visual Search: By using your phone’s camera, you can show Google what you’re looking at in real time. Imagine fixing your bike and pointing your camera at a bolt to ask if it’s the right size. This builds on Google Lens but takes it further with live, context-aware help.

These features are currently in the Labs section of the Google app and will expand in the coming months.

Keeping Search and Assistance Clear

Google’s AI assistant, Gemini, shares some features with the search engine, but Google emphasizes a key difference: Search is for learning and discovery, while Gemini is designed to help with tasks like coding and writing.

Facing Rising Competition

Google’s dominance in search has lasted nearly 30 years, but now faces intense competition. AI chatbots like ChatGPT and new AI-driven search engines such as Perplexity offer fresh alternatives. Tech giants Apple, Amazon, and Microsoft are also integrating AI into their virtual assistants, and OpenAI recently launched its own AI-powered search engine.

Notably, Apple’s Eddy Cue revealed in court that Google searches in the Safari browser dropped in April 2025 for the first time since 2002, signaling a potential shift in user habits. Google disputes this, pointing to overall growth in search queries.

Market analysts predict that by 2026, traditional search volume could drop by 25% as AI tools become more popular.

Google’s Future Outlook

Despite the challenges, Google is optimistic. Sundar Pichai described the future as “a proactive world, an agentic world” where AI anticipates user needs and takes action on their behalf.

With these AI-powered updates, Google aims to stay at the forefront of how we explore the web—making search more intuitive, interactive, and personalized than ever before.

Source: CNN – Google outlines its big plans for the future of search

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If you’ve ever clicked a link and suddenly been hit with a pop-up warning that your device has a virus, you’re not alone. These fake “tech support” scams are everywhere — and now, Google is stepping up its efforts to stop them using artificial intelligence.

In a recent blog post, Google announced it’s rolling out a new AI-powered safety feature in Chrome that can identify and flag scam websites the moment you click on them. The tool uses a lightweight version of its Gemini AI model, known as Gemini Nano, which runs directly on your device. That means faster detection and enhanced privacy — no need to send your data to the cloud.

How It Works

When users enable Chrome’s “enhanced protection” mode on desktop, Gemini Nano kicks in to scan web pages in real-time. If the AI detects something suspicious, like a cloaked phishing site or a deceptive tech support scam, it will trigger a warning screen — giving users the option to back out before falling into a trap.

This is part of a broader AI-driven push across Google’s platforms — including Chrome, Search, and Android — to combat the growing sophistication of online scams.

Why It Matters

Online scammers have become increasingly effective thanks to AI, which allows them to generate convincing fake content at scale. According to the Global Anti-Scam Alliance, consumers lost more than $1 trillion to scams in the past year alone.

“Fighting scammers has always been a cat-and-mouse game,” said Phiroze Parakh, senior director of engineering for Google Search. “Now, both sides have AI tools — the question is who uses them more effectively.”

Other Key Updates from Google:

• Android Alerts: Android users will now get warnings if scammy sites try to send them suspicious Chrome notifications — and they’ll be able to unsubscribe with a single tap.
• Search Protection: Google says AI now blocks 20 times more scammy websites from appearing in search results than it did just a few years ago. In 2024 alone, the company removed hundreds of millions of scam pages every day.
• Airline Scam Crackdown: One major success involved fake customer service numbers in airline-related searches. Thanks to AI, Google has reduced these types of scams by 80%.

The Bigger Picture

Google isn’t alone in this AI-powered battle. Other companies are also leveraging smart technology to fight fraud:

• UK mobile carrier O2 uses a chatbot named Daisy to tie up phone scammers’ time.
• Microsoft has tested a tool that listens in on phone calls to detect fraud in real time.
• The U.S. Treasury Department says AI helped recover $1 billion in check fraud in 2024 alone.

With scams evolving fast, companies are racing to stay one step ahead — and it looks like AI may finally give defenders an edge.

Source: CNN – Google is using AI to identify scammy websites on Chrome when you click on them

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Apple is reportedly exploring a major shift in how it handles search on its Safari web browser, potentially bringing AI-powered search engines into the mix. This move could pose a significant challenge to Google’s longstanding dominance in the search market.

According to Bloomberg News, Apple executive Eddy Cue testified during the U.S. Justice Department’s antitrust case against Alphabet that Safari search traffic recently dropped for the first time. He attributed this decline to more users turning to AI-powered search engines, signaling a potential turning point for traditional search methods.

Currently, Google holds the default search engine position on Safari—a highly sought-after spot that comes with a hefty price tag. It’s estimated that Google pays Apple around \$20 billion annually for this privilege, which represents about 36% of Google’s search advertising revenue through Safari. However, if Apple shifts its focus to AI-powered alternatives, it could significantly impact Google’s bottom line.

This news comes at a time when Google is already facing increased competition from AI-focused startups like OpenAI and Perplexity. Apple has partnered with OpenAI to integrate ChatGPT into Siri, and Google is scrambling to secure a deal with Apple to embed its Gemini AI technology into the latest Apple devices.

Apple’s potential move could further shake up Google’s dominance, with some analysts predicting serious consequences. D.A. Davidson analyst Gil Luria warned that if Apple moves away from Google as its default search engine, it could result in a massive shift in advertising budgets. Advertisers, many of whom currently rely solely on Google’s search advertising platform, might divert their ad dollars to other viable search alternatives.

While Cue confirmed that Apple plans to include AI-driven search engines, such as OpenAI and Perplexity, as options in Safari, he emphasized that they likely won’t be the default search engines—at least not initially. The introduction of AI search engines could provide users with more choices, potentially changing the landscape of online search.

Google, which has long held an almost monopolistic share of the search market (around 90%), faces an uncertain future if alternatives become mainstream. As tech investors are closely watching these developments, the next steps could reshape how we search and how advertisers spend their marketing budgets.

Both Apple and Google saw their stock prices dip following the news—Alphabet shares dropped 6%, while Apple’s decreased by about 2%. Neither company, nor the Justice Department, responded to requests for comment at the time of the report.

As the AI-driven search race heats up, it’s clear that the battle for the future of search is just beginning. Stay tuned to see how this plays out.

Source: CNN – Apple looks to add AI search to Safari in potential blow for Google

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SoftBank Group Corp. is on the hunt for a record-breaking $16.5 billion loan to fuel its artificial intelligence (AI) investments in the United States, according to sources familiar with the matter. This would mark the company’s largest-ever loan solely in US dollars, underscoring SoftBank’s growing commitment to the booming AI sector.

The loan, a bridge facility with a term of approximately 12 months, is still in its early stages of negotiation with banks. Sources, who asked to remain anonymous, noted that the deal could evolve over the coming weeks. A SoftBank representative declined to comment on the discussions at this stage.

This strategic funding is part of SoftBank’s broader effort to accelerate its $500 billion AI infrastructure project in the US. Along with its robotics and semiconductor ambitions, the company is positioning itself as a key player in the AI space. Despite collaborating with major names like OpenAI, Oracle Corp., and Abu Dhabi’s MGX on the Stargate AI venture, SoftBank remains the primary financier for the data center project it promised to US President Donald Trump.

The loan could also enable SoftBank to take a leading role in a record-breaking $40 billion funding round for OpenAI, the creator of ChatGPT. This round, which would value OpenAI at a staggering $300 billion, is set to become the largest financing round in history. The Stargate initiative is part of SoftBank’s broader effort to enhance the widespread adoption and availability of OpenAI services.

SoftBank’s latest loan request would far exceed its previous record, which was a $10 billion margin loan in 2021, secured with its shares in Alibaba Group Holding Ltd. That loan involved at least 14 banks and set the stage for SoftBank’s push into AI. Now, with even bigger ambitions, SoftBank’s bid for $16.5 billion highlights its determination to lead in the rapidly evolving tech landscape.

As SoftBank continues to invest in AI and related technologies, this loan marks a significant step in its quest to shape the future of artificial intelligence globally.

Source: Bloomberg – SoftBank Seeks Record $16.5 Billion Loan for AI Projects in US

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iPhone Revenue Decline and Market Challenges

Apple reported a 1% year-over-year drop in iPhone revenue for the October-December quarter. This decline wasn’t entirely unexpected, as the first software update enabling AI features arrived just before Halloween and remains unavailable in many international markets, including China, a crucial market where Apple is losing ground.

CEO Tim Cook announced that AI-enabled software upgrades would expand to more European markets, Japan, and Korea in April. However, in China, Apple’s total revenue plunged 11% to $18.5 billion, reflecting the iPhone’s shrinking market share against local competitors like Huawei and Xiaomi, whose year-over-year shipments grew by over 20%, while Apple’s declined by nearly 10%, according to International Data Corp.

Financial Performance: Modest Growth

Despite the iPhone’s sluggish sales, Apple managed a slight overall revenue increase. The company reported:

• $124.3 billion in total revenue (+4% YoY)
• $36.3 billion in net earnings (+7% YoY)
• $69.1 billion in iPhone revenue

Apple’s stock initially dipped after the earnings report but later rose over 3% after Cook highlighted a record number of iPhone upgrades.

AI Hype vs. Reality

Apple’s AI push was expected to drive a surge in iPhone upgrades. This anticipation fueled a 30% stock surge in 2023, but as demand failed to meet expectations, Apple’s stock dropped 5% in January 2024.

While Apple has lagged behind Microsoft, Google, and Meta in AI investment, this cautious approach may prove beneficial. Chinese startup DeepSeek recently unveiled a cost-effective AI model, challenging the assumption that AI development requires massive spending.

Services Division: A Key Growth Engine

Outside the iPhone, Apple’s services division remains a key revenue driver, generating $26.3 billion (+14% YoY). However, a potential Google search monopoly ruling threatens the lucrative deal that makes Google the default search engine on Apple devices, which contributes over $20 billion annually.

Outlook: Optimism Amid Challenges

Cook remains bullish on Apple’s future, stating:

“I could not feel more optimistic about our product pipeline. There’s a lot of innovation left in the smartphone.”

Apple’s revenue forecast for the January-March quarter meets or exceeds analyst projections, boosting investor confidence despite concerns over AI adoption and competition in China.

Key Takeaways

iPhone revenue dipped 1%, with China sales falling 11%
Apple’s total revenue rose 4%, exceeding expectations
AI expansion planned for Europe, Japan, and Korea by April
Services revenue surged 14%, but Google deal faces legal risk
Apple’s stock rebounded 3% after positive upgrade trends
AI investment strategy could pay off amid cost-cutting breakthroughs

Apple’s long-term success hinges on AI integration, global expansion, and navigating competitive pressures—especially in China.

Source

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Key Highlights:

• Nvidia introduces new gaming chips powered by AI technology.
• RTX 50 series chips promise movie-like graphics and enhanced human face generation.
• Prices range from $549 to $1,999, with releases starting on January 30.
• Nvidia’s stock hits a record high, reaching a $3.66 trillion valuation.

At the CES 2025 conference, Nvidia CEO Jensen Huang unveiled a groundbreaking new family of gaming chips that are set to transform the gaming experience with advanced AI technology. These new chips, part of the RTX 50 series, will serve as the cornerstone of Nvidia’s videogame chip business. The announcement was made during Huang’s keynote speech at the renowned Consumer Electronics Show (CES), which runs from January 7 to 10 in Las Vegas.

New Gaming Chips Powered by AI Technology

The newly introduced chips leverage Nvidia’s Blackwell AI technology, which is already used in data centers. This cutting-edge technology enhances the realism of video games, particularly in the area of shaders. Shaders add intricate details to images, like making a ceramic teapot appear more lifelike by adding imperfections and fingerprint smudges to its surface.

Additionally, these chips incorporate AI that enables game developers to create more realistic human faces – an area where even minor imperfections can be noticeable to players. The new chips are designed to elevate the overall gaming experience, offering unparalleled visual fidelity.

RTX 50 Series: Price and Availability

The RTX 50 series gaming chips will be available at a range of prices, from $549 for mid-tier models to $1,999 for the top-end versions. The higher-end models are set to launch on January 30, while the lower-tier models will arrive in February. Nvidia claims that the $549 mid-grade chip will deliver performance that rivals its previous flagship, the RTX 4090, which sold for $1,600.

CES 2025: A Platform for Innovation

CES, formerly known as the Consumer Electronics Show, is a major event in the tech world, where companies unveil a wide range of new products. This year’s event, taking place from January 7-10 in Las Vegas, will feature everything from automotive innovations to the latest advancements in artificial intelligence.

Nvidia has consistently used CES as a platform to announce new consumer chips, while also expanding its presence in the rapidly growing AI market.

Nvidia’s Record-Breaking Stock Performance

Nvidia’s stock closed at a record high of $149.43 on Monday, pushing its market valuation to $3.66 trillion. This impressive performance makes Nvidia the second-most valuable publicly traded company in the world, behind only Apple. The company’s continued innovation and growth, particularly in AI and gaming technologies, have positioned it as a leader in the tech industry.

Source

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Google Cloud’s DevOps Research and Assessment (DORA) team surveyed nearly 3,000 technology professionals globally and AI adoption is increasing rapidly within technology shops.

Also: 5 tips for choosing the right AI model for your business

Over three-quarters (76%) of respondents said they rely on AI for tasks like code writing, summarizing information, and code explanation. At least 81% said their companies have shifted technology resources into developing AI.

AI adoption was positively correlated with increased flow, productivity, job satisfaction, code quality, and internal documentation quality. At least 67% reported that AI is helping them improve their code.

Also: Asana launches a no-code tool for designing AI agents – aka your new ‘teammates’

So far, so good. Overall, a 25% increase in AI adoption in development shops is associated with the following metrics:

• 7.5% increase in documentation quality
• 3.4% increase in code quality
• 3.1% increase in code review speed
• 1.3% increase in approval speed
• 1.8% decrease in code complexity

However, the researchers noted AI adoption is also associated with a decrease in delivery stability: “AI adoption may negatively impact software delivery performance,” according to Nathen Harvey and Derek DeBellis, both with DORA.

Also: Technologist Bruce Schneier on security, society and why we need ‘public AI’ models

Close to four in ten professionals (39%) reported having “little or no trust” in AI. “This unexpected low level of trust indicates to us that there is a need to manage AI integration more thoughtfully,” the researchers said. “Teams must carefully evaluate AI’s role in their development workflow to mitigate the downsides.”

The survey revealed AI adoption was accompanied by an estimated decrease in delivery throughput of 1.5% and an estimated reduction in delivery stability of 7.2%.

“Our data suggest that improving the development process does not automatically improve software delivery — at least not without proper adherence to the basics of successful software delivery, like small batch sizes and robust testing mechanisms,” the researchers said.

Also: Gartner’s 2025 tech trends show how your business needs to adapt – and fast

“AI has positive impacts on many important individual and organizational factors which foster the conditions for high software delivery performance. But, AI does not appear to be a panacea.”

These results led the research authors to suggest a potential need for change management practices in the age of AI-powered development. They urged companies to adopt the following measures:

• “Enable your employees and reduce toil by orienting your AI adoption strategies towards empowering employees and alleviating the burden of undesirable tasks.”
• “Establish clear guidelines for the use of AI and address procedural concerns and foster open communication about its impact.”
• “Encourage continuous exploration of AI tools and provide them dedicated time for experimentation, and promote trust through hands-on experience.”

The survey also documents the benefits of a platform-engineering approach to development and operations. As many as 89% of respondents said they use an internal developer platform, reporting an average 6% gain in productivity at the team level when their organizations have dedicated platform teams.

 Source

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