Apple Weighs Mistral AI and Perplexity Acquisitions to Fix Its AI Gap

Apple’s AI strategy is once again under the spotlight, with reports suggesting the company has been weighing major acquisitions to avoid falling behind competitors.

According to The Information, Apple executives have discussed potentially acquiring either Paris-based Mistral AI or the fast-rising AI-powered search startup Perplexity.

The timing is notable: just weeks ago, CEO Tim Cook said Apple was “very open” to large-scale mergers and acquisitions if they could accelerate the company’s artificial intelligence efforts. Internally, however, not all executives see eye to eye. Eddy Cue, Apple’s head of Services, is pushing hard for bold moves – he previously backed ideas like buying Netflix or even Tesla. By contrast, software chief Craig Federighi reportedly prefers Apple to rely on its own talent and technology rather than acquisitions.

Both companies in Apple’s sights carry weight. Mistral AI has positioned itself as Europe’s answer to OpenAI and is reportedly raising $1 billion at a $10 billion valuation. Meanwhile, Perplexity, valued at $20 billion, has already been linked to Apple in earlier rumors but has denied any formal talks. Still, the chatter refuses to die down.

The urgency is clear. Samsung and Google have turned Apple’s slow AI rollout into an advantage for their flagship devices. Consumers who want cutting-edge AI features are leaning toward phones like the Pixel 10 or Galaxy S25, where Google’s Gemini and Samsung’s Galaxy AI already feel integrated. Apple, meanwhile, is left considering whether to infuse Siri with outside AI muscle – potentially even Gemini – just to stay relevant.

Apple’s future in AI may hinge on whether it takes a bold leap or stays the course. Building AI from scratch may keep the company’s independence intact, but with competitors racing ahead, an acquisition could prove the faster – and smarter – path forward.