Why AI Search Startup Perplexity Has Meta and Apple Paying Close Attention

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