BUSINESS
Indian-origin techie Aravind Srinivas's AI startup Perplexity is being eyed by Apple and Meta for acquisition, signalling a major shift in the AI race.
Aravind Srinivas, a brilliant Indian-origin engineer and entrepreneur, is making headlines in the tech world. He is the co-founder and CEO of Perplexity AI, a fast-growing AI-powered search engine that many believe could one day challenge Google’s dominance. Srinivas completed his engineering studies at IIT Madras and a PhD in Computer Science from the University of California, Berkeley. His passion for artificial intelligence led him to work as a research intern at big names like OpenAI, DeepMind, and Google, before returning to OpenAI as a research scientist in 2021. Then, in August 2022, he co-founded Perplexity AI with Andy Konwinski, Denis Yarats, and Johnny Ho.
Perplexity’s main idea is simple: give people direct, conversational answers instead of confusing links. The platform lets users ask questions naturally, just like they would speak to another person, and get clear, footnoted answers from across the web. It also allows users to choose which large language model (LLM) they want to use and even supports image uploads. This mix of transparency, choice, and simplicity is what has made Perplexity one of the most exciting new AI tools in the world.
Why Both Apple and Meta Are Interested in Buying Perplexity AI
In a surprising turn of events, both Apple and Meta are reportedly interested in acquiring Perplexity AI. While tech giants like these often pursue new startups quietly, this time it’s become public news, making the race even more interesting. According to reports by Bloomberg, Meta approached Perplexity first, even before investing USD 14.3 billion in another AI company called Scale AI. Around the same time, Apple also showed interest, which is unusual because Apple generally prefers to build things in-house rather than buy them.
Apple's move could be a sign that it is trying to catch up in the AI race. Its recent attempts to impress the public with AI, like the much-hyped Apple Intelligence, fell short of expectations. The company is also under pressure to reduce its reliance on Google, especially as regulators are questioning Apple’s long-standing deal to keep Google as the default search engine on iPhones.
Apple’s Cautious AI Strategy Could Be Changing
Historically, Apple has avoided making large acquisitions. Its last big buy was Beats in 2014 for USD 3 billion. Instead, Apple usually prefers small deals that bring talented teams on board. But things might be changing. The company recently discussed possible integration of Perplexity AI into Safari, hinting that Apple may be looking for a search engine of its own. It also wants to create a more private and user-friendly AI experience that aligns with its hardware-first model.
Apple isn’t trying to become another Google or OpenAI just yet. Instead, it wants to improve the AI experience across its iPhones, Macs, and other devices. A company like Perplexity, which already blends clean design with strong AI, fits right into Apple’s ecosystem. The startup’s search tool works smoothly on iOS and even feels a bit Apple-like in its simplicity.
Meta’s Need for AI Talent Is Growing Urgent
Meta, on the other hand, has a very different approach. The company is known for big acquisitions like Instagram and WhatsApp and is currently on a spending spree in the AI space. CEO Mark Zuckerberg is under pressure to keep up with Google and OpenAI. Meta recently invested USD 14.3 billion in Scale AI and tried to acquire another AI startup, Safe Superintelligence, launched by OpenAI co-founder Ilya Sutskever.
Meta is also reportedly offering huge bonuses, as much as USD 100 million, to poach talent from OpenAI. The company wants to build stronger AI models that will power everything from social media to virtual reality and smart glasses. For Meta, acquiring Perplexity could improve its AI assistant, which already serves over a billion users monthly across Facebook, Instagram, and WhatsApp.
Whether Perplexity agrees to sell or not remains unclear. But one thing is certain: Aravind Srinivas and his team have created something special, so much so that two of the world’s biggest tech giants are now fighting over it.