Apple is facing mounting pressure to make a bold AI acquisition as rivals surge ahead. Reports suggest the company has considered buying French startup Mistral AI, valued at $10 billion, or AI-driven search engine Perplexity, worth $20 billion. Yet, Apple’s aversion to large-scale deals may be holding it back.
Historically, Apple has shunned major takeovers, preferring small “acqui-hires” that fit seamlessly into its ecosystem. Its biggest deal remains the $3 billion purchase of Beats in 2014. This conservative approach reflects Apple’s belief in building technology in-house, a strategy that paid off with Apple Silicon but may be too slow for today’s fast-moving AI race.
Mistral would bring efficient, open-weight language models ideal for Apple’s on-device privacy-first approach, while Perplexity could provide a homegrown alternative to Google search, saving Apple billions in fees and strengthening its ecosystem.
Internally, leaders are split—services head Eddy Cue favors large acquisitions, while Craig Federighi argues Apple can still build AI itself. CEO Tim Cook’s strategy of prioritizing quality over speed echoes past successes but risks leaving Apple behind as Microsoft and Google rapidly deploy generative AI.
If caution prevails, Apple may miss the most transformative tech wave since the smartphone.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.
