TLDR: Apple is reportedly in early discussions to acquire leading artificial intelligence startups Perplexity and Nvidia-backed Mistral. This strategic move signals a significant acceleration of Apple’s AI strategy, aiming to integrate advanced AI capabilities into its products, potentially including its Safari browser, and to compete more aggressively with other major tech companies in the rapidly evolving AI landscape.
Cupertino, California – August 27, 2025 – Apple Inc. is reportedly engaging in early internal discussions regarding the potential acquisition of two prominent artificial intelligence companies: Perplexity and the Nvidia-backed European startup, Mistral. This development, confirmed by reports circulating as of August 27, 2025 , indicates a concerted effort by the iPhone maker to significantly bolster its AI capabilities and address concerns about lagging behind competitors in the AI race .
Perplexity, an AI search engine startup, recently completed a funding round that valued it at an impressive $14 billion . The company specializes in providing AI search tools that deliver summarized information to users, akin to offerings from OpenAI’s ChatGPT and Google’s Gemini. Integrating Perplexity’s technology could allow Apple to incorporate AI-driven search functionalities directly into its Safari browser, potentially shifting away from its long-standing partnership with Alphabet’s Google . Bloomberg News previously reported that Meta Platforms had also attempted to acquire Perplexity earlier this year .
Meanwhile, Mistral, a French AI darling founded in 2023 by ex-DeepMind alumni, has garnered significant attention for its large language models (LLMs) and its promise of developing homegrown foundation models independently of U.S. tech giants. Mistral has raised over $1 billion in funding from notable investors including Index, Lightspeed, General Catalyst, A16z, and Nvidia, achieving a €6 billion valuation in June 2024 . Sources suggest that Mistral’s efficient, open-weight models align well with Apple’s emphasis on on-device privacy, potentially accelerating the development and deployment of ‘Apple Intelligence’ upgrades . An acquisition of Mistral would also enable Apple to secure top European AI talent and strengthen its position against rivals like Microsoft and OpenAI .
Analysts from Wedbush have urged Apple to act swiftly, emphasizing that despite its massive consumer installed base of 2.4 billion iOS devices and 1.5 billion iPhones, the company risks falling behind AI leaders such as Nvidia, Microsoft, Alphabet, Amazon, Meta, OpenAI, and Oracle . These potential acquisitions represent a strategic pivot for Apple, which has historically been resistant to large-scale acquisitions to solve technological challenges .
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However, any deal, particularly for Mistral, could face significant hurdles. Regulatory scrutiny, Mistral’s own willingness to be acquired, and potential political resistance from the French government, which champions the company as a symbol of European AI sovereignty, could complicate negotiations . Discussions are reportedly in their nascent stages and may not ultimately lead to formal offers . Nevertheless, these reports underscore Apple’s intent to make substantial moves in the AI domain to maintain its competitive edge in the rapidly evolving tech landscape.
