Apple explores AI acquisitions amid competition, eyes Perplexity and Mistral

Apple’s interest marks a shift from its cautious M&A approach, with CEO Tim Cook signaling readiness for larger AI acquisitions to accelerate product development and strengthen the company’s future devices

Apple is reportedly weighing major artificial intelligence acquisitions as part of its strategy to close the gap with rivals in the fast-moving AI race. According to a report by The Information, the iPhone maker has held internal discussions about possible bids for French AI startup Mistral and U.S.-based AI search company Perplexity.

The move signals a potential shift in Apple’s traditionally cautious approach to mergers and acquisitions. Chief Executive Tim Cook had hinted last month that the company was prepared to pursue larger AI-related deals in order to accelerate product development and enhance future devices.

Mistral, known for its open-source large language models, has quickly become one of Europe’s most valuable AI startups. Backed by investors including Nvidia, it was valued at more than $6 billion following a funding round last year. Recent reports suggest the company is exploring another capital raise that could push its valuation to $10 billion.

Perplexity, which has secured backing from Jeff Bezos and Nvidia, has emerged as a rising competitor in the AI-powered search market. However, the company stated it is not aware of any merger talks involving Apple.