Apple has long been known for its precision and patience when it comes to growth. Instead of splashy billion-dollar acquisitions, the company has often preferred “tuck-in” deals—buying smaller startups with specialized technology and quietly integrating them into its ecosystem. But with artificial intelligence evolving faster than ever, Apple may be preparing to break its own rules.
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Recent reports suggest that Apple is considering multi-billion-dollar buyouts of two of the hottest names in the AI world: Mistral AI and Perplexity. If true, this could mark one of the boldest shifts in Apple’s strategy and reshape how it competes in the global AI race.
Why Apple May Change Its Strategy
Apple’s traditional “build it in-house” approach has worked well in areas like hardware and software. But AI development moves at lightning speed. Rivals such as Google and Samsung are already rolling out advanced AI features, while Apple’s Siri has often been criticized as outdated and underwhelming.
Even Apple CEO Tim Cook has admitted that AI is “as big or bigger than the internet.” With the iPhone 17 launch on the horizon, the pressure is mounting. Acquiring a leading AI startup could help Apple catch up and even leapfrog competitors.
The Potential Targets: Mistral AI & Perplexity
Mistral AI
Based in Paris, Mistral AI has emerged as a European leader in artificial intelligence. Its strength lies in developing efficient, compact large language models (LLMs) that can run faster and with fewer resources. This aligns perfectly with Apple’s vision of on-device AI—fast, private, and deeply integrated into the iPhone and iPad experience. With a valuation above $6 billion, acquiring Mistral would be one of Apple’s most expensive deals ever.
Perplexity
Perplexity, on the other hand, is a U.S.-based startup revolutionizing search. Instead of giving users a list of links, it provides direct, conversational answers with citations—essentially an AI-powered information co-pilot. For Apple, buying Perplexity could reduce its heavy reliance on Google Search, a partnership that costs billions annually and faces growing antitrust challenges. With backing from Nvidia and Jeff Bezos, Perplexity is seen as one of the most promising AI players in the U.S.
The Debate Inside Apple
Not everyone at Apple agrees on whether to pursue such a bold acquisition.
- The Pro-Buy Camp: Led by Services chief Eddy Cue, this group believes acquiring proven AI leaders will give Apple a massive head start—similar to how its $3 billion acquisition of Beats helped Apple Music become a dominant streaming player.
- The Build-First Camp: Led by software chief Craig Federighi, this faction prefers Apple’s classic strategy of building everything in-house. They argue that this ensures Apple’s trademark polish, privacy, and control.
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Past Deals, Future Signals
Historically, Apple’s acquisitions have been relatively modest. Big exceptions include the Beats purchase in 2014 and Intel’s modem business in 2019. Both were strategic, filling critical gaps. But acquiring Mistral AI or Perplexity would signal a dramatic shift—showing Apple is ready to gamble big on AI innovation.
With more than $133 billion in cash reserves, Apple has the resources to make such a move. What remains to be seen is whether it has the appetite for a deal that could redefine its culture and its future in the AI era.
What Comes Next?
As the world waits for the iPhone 17 reveal, Apple’s next decision—whether to buy, build, or strike a balance—will be a defining moment. Whatever path it chooses, one thing is clear: Apple can no longer sit on the sidelines of the AI revolution.
The great AI gamble has begun, and Apple’s next move may be its most important one yet.
