Ever since Mark Gurman reported that internal discussions have been held at Apple about purchasing AI startup Perplexity, there’s been speculation that this deal will happen. But we are a long way from this deal coming to fruition. But even if this deal happens, it’s only part of the solution to Apple’s problems.
Apple clearly has a technology problem with its AI program. That problem stems from a strategic misstep. About two years ago Apple decided that the best way for it to get into the AI race was to build its own. In car racing terms, Apple had a choice between building its own car or buying a team. It chose to build the car and all the other race teams have improved their cars to such an extent that Apple can’t catch up.
So, Apple has realised the only way it can catch up is to buy someone else’s engine tech to jumpstart development of its own car.
This is why buying Perplexity makes sense for Apple. It gives them a chance to give their AI development a turbo boost.
Time is Apple’s second problem. And that’s something they can’t buy or acquire no matter how much money they have. Time is against Apple and the market doesn’t seem prepared to wait another year for Apple to complete an acquisition and integrate the new technology into Siri and other parts of its software stack.
A big part of Apple’s problems stem, I think, from a hint of arrogance. They saw what OpenAI, Perplexity and others achieved and believed they could do the same or better in far less time without the same experts. And they have been found wanting.
Apple may end up buying Perplexity or some other AI start up. And they may successfully integrate it into the Apple software stack. But by the time they achieve that competitors might be too far ahead for Apple to catch up.
Anthony is the founder of Australian Apple News. He is a long-time Apple user and former editor of Australian Macworld. He has contributed to many technology magazines and newspapers as well as appearing regularly on radio and occasionally on TV.