The Search Hegemony War in the AI Era: Why Is Apple Targeting Perplexity
Introduction
Since the emergence of ChatGPT at the end of 2022, Generative AI has been rapidly transforming the global digital landscape. The traditional keyword-centric search method is gradually shifting towards conversational search that directly responds to user queries, which necessitates a fundamental redefinition of the 'future of search.' Cracks are being detected in Google's long-standing dominance in the search market. At the center of this change is Apple, one of the world's leading technology companies. For a long time, Apple has relied on Google for the search functionality within its devices and operating systems. The fact that Apple receives about 20 billion dollars in revenue from Google each year makes this structure seem like a mutually beneficial strategy. However, recently, Apple has shown signs of wanting to break away from its search partnership with Google. One of the moves reported recently is Apple's consideration of acquiring the AI search startup Perplexity AI. This news goes beyond a simple acquisition it has significant implications for Apple's AI strategy, the restructuring of market dominance in the search space, and changes in the platform ecosystem. This essay aims to analyze why Apple is focusing on Perplexity, exploring the background and strategy from various angles.
What is Perplexity AI
Perplexity AI is a U.S. AI search startup founded in 2022 by former OpenAI researcher Aravind Srinivas. From its early days, they have presented a critical alternative to traditional Google search methods, branding themselves as a 'search engine that provides accurate answers based on questions.' Perplexity delivers summarized responses from multiple sources rather than a simple list of websites in response to user queries. This is based on various state-of-the-art LLMs (large language models) such as GPT-4, Claude, and Gemini, and users can switch between models as needed. Users can see how the search results are constructed and receive explicit links and sources. This trust-based search structure stands out by not relying on advertisements and being restructured around the user's search intent and context. Due to this technological approach, Perplexity has quickly gained attention from the market and investors, recently being valued at approximately 14 billion dollars (about 19 trillion won) through its Series B funding round. Perplexity is emerging as a company symbolizing the 'post-Google' era rather than just a simple search startup.
Background of Apple's acquisition review
It has been reported that initial discussions regarding the acquisition of Perplexity were held internally at Apple starting in the second half of 2024. According to Bloomberg, Adrian Perica, Apple's head of M&A, and Eddy Cue, head of the services division, are leading these discussions, although they have not yet formally communicated an offer to Perplexity. The background for Apple's interest in acquiring Perplexity is complex. First, there are the technical limitations of Siri. Apple's AI voice assistant, Siri, was innovative in its early days, but its pace of development has slowed down since then. There is a prevailing assessment that it lags behind recent GPT-based voice assistants and AI agents in both performance and naturalness. To improve this, securing external AI expertise is essential. Perplexity possesses technology specialized in search and response, and its integration with Siri is being considered. Second, there is structural unease regarding the partnership with Google. Apple receives billions of dollars annually in exchange for setting Google as the default search engine on iOS, which contributes to Apple's services revenue. However, the U.S. Department of Justice has sued Google on the grounds that this deal is anti-competitive, and depending on the outcome of this lawsuit, Apple could also find itself in a disadvantageous position. In light of this, securing an in-house search engine or introducing independent AI search technology through external startups is strategically necessary. Third, in line with Apple's shift in AI strategy, there is an evident willingness to build direct AI services within a closed ecosystem. The recently announced 'Apple Intelligence' at WWDC 2025 is part of this strategy, and Perplexity could serve as a strong partner to complement this in terms of search functionality.
The possibility of a partnership is also raised rather than an acquisition.
It is still uncertain whether Apple will completely acquire Perplexity. In fact, Perplexity has stated that it has not received any official offer from Apple, and Bloomberg's report also explains that the acquisition is still at the internal review stage. In this context, industry experts are leaning towards the possibility of functional integration or strategic partnerships rather than an acquisition. For example, Perplexity's search technology could be integrated into Safari browsers on iOS and macOS or adopted as the foundation for AI response systems within Siri. This would allow for much quicker market response compared to a full M&A and could also reduce regulatory burdens. Particularly, the fact that Perplexity currently maintains its identity as an independent platform and adheres to an ad-free search model aligns with Apple's privacy-centric philosophy, providing a natural background for cooperation between the two companies. Selective integration and technological partnerships may emerge as strategic options for Apple rather than a complete absorption.
The symbolism and impact of this strategy
Apple's acquisition or partnership strategy with Perplexity is seen as a declaration of strategic independence in the competition for search dominance, beyond merely securing technology. Firstly, this is significant as it marks the dawn of the 'post-Google' era. Google has effectively monopolized the search market for the past 20 years, but this structure is gradually being reshaped with the rapid rise of AI technology. If Apple intends to secure leadership in the search domain through Perplexity, it could deliver a significant shock to the existing ecosystem. Additionally, it opens the possibility of a qualitative transformation in the user experience within the Apple ecosystem. While Siri has faced many limitations until now, its integration with Perplexity could evolve it into a 'true AI assistant' that is more accurate and contextually aware. This could represent a turning point for Apple, shifting from a hardware-centric company to a service-oriented AI platform enterprise. Furthermore, this strategy could impact the global search and AI industry as a whole. Major IT companies like Google, Microsoft (Bing + OpenAI), and Meta are already engaged in fierce competition over AI search dominance, and if Apple actively participates in this competition, the competitive landscape will become significantly more complex, which could lead to a diversification of consumer benefits.
Conclusion
Apple's interest in Perplexity is backed by complex technological, legal, and strategic factors that go beyond a simple M&A strategy. Perplexity is emerging as the most promising external partner based on three pillars: the need for innovation in Siri, the desire to break free from dependency on Google, and the goal of securing leadership in the AI ecosystem. Of course, for now, the potential for a strategic partnership is greater than that of an acquisition, and it remains uncertain whether actual negotiations will take place in the future. However, what is significant is that Apple has sent a clear signal to the market that it will no longer rely solely on Google Search. Search is evolving from merely listing information to becoming a "conversational information interface" where AI understands human questions, comprehends context, and provides reliable answers. In this context, Apple has begun to take action to avoid falling behind, and Perplexity may be its first experimental target. Ultimately, this review of acquisition goes beyond a simple transaction. It is Apple's response to the question that runs through the age of AI: "Who will dominate the gateway to information in the future?"
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