The lack of AI development from Apple’s side might not adversely impact its earnings for the Q2 2025 period, but it is no secret that the company’s shareholders have started to display concern to the point where CEO Tim Cook’s replacement talks have also been reported about occasionally. According to analysts, Apple cannot succeed with its internal AI development, and since it has heaps of cash at its disposal, the company is recommended to acquire an entity that has succeeded in this area, such as Perplexity, for $40 billion to cover some much-needed ground against the competition.
Talks about acquiring Perplexity were said to be happening previously, but no word on where Apple’s executives currently stand on their decision
Later today, the Cupertino firm will have some comments to pass regarding AI development, likely mentioning that it is working on several advanced features that will arrive next year. As reported by AppleInsider, Wedbush analysts state that it is ‘crystal clear’ that the company’s innovation in artificial intelligence will not be happening internally and that it needs to look at other options to catch up to other players. One of those options is acquiring Perplexity and its AI platform for a cool $40 billion.
While it might be cheaper for Apple to refine its services with its internal development team, there is no guarantee that the company will be successful in this regard. The California-based titan has previously been reported to be in talks of acquiring Perplexity, with the details mentioning that the latter was valued at $14 billion. Paying $40 billion is an unfathomable sum for many, and Apple’s most expensive acquisition has been Beats at $3 billion, suggesting that the iPhone maker might not be willing to burn through so much cash just for one entity.
There is no telling if Apple will go through with this deal, but even if shareholder pressure forces Tim Cook to make moves that he would typically not make, the company’s board of directors has a few loyalists who will defend him if others try to force his hand.
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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