Apple executives have reportedly discussed acquiring Mistral AI and Perplexity, The Information reports.

Services chief Eddy Cue is apparently the most vocal advocate of a deal to buy AI firms to bolster the company's offerings. Cue previously supported propositions of Apple acquiring Netflix and Tesla, both of which Apple CEO Tim Cook turned down. Other executives such as software chief Craig Federighi have reportedly been reluctant to acquire AI startups, believing that Apple can build its own AI technology in-house.

Mistral AI is a Paris-based artificial intelligence company founded in 2023 that develops open-weight large language models designed to be smaller, faster, and easier to deploy than many competitors, while still delivering strong performance across reasoning and coding tasks. The company positions itself as a European alternative to American players like OpenAI and Anthropic.

Perplexity is a U.S.-based artificial intelligence company that builds an AI-powered search and answer engine combining large language models with real-time web indexing to provide cited, conversational responses. Unlike traditional search engines, it prioritizes transparency by showing sources alongside answers, positioning itself as an alternative to Google for information retrieval.

Apple is said to be hesitant to do a deal, which would likely cost billions of dollars. Apple has rarely spent more than a hundred million dollars on an acquision, with Beats at $3 billion and Intel's wireless modem business at $1 billion.

If a federal ruling ends the $20 billion deal between Apple and Alphabet that makes Google the default search engine on its devices, the company could be compelled to acquire an AI-powered search startup to fill that gap. For now, Apple apparently told bankers that it plans to continue with its strategy of focusing on smaller deals in AI.

Source: Macrumors