Should Apple make a blockbuster acquisition of Perplexity to gain AI search and conversational intelligence, or double down on an internal Siri AI upgrade? Wall Street analysts, led by Dan Ives, have pushed for a bold Apple AI acquisition to accelerate capabilities and market narrative. At the same time, reporting suggests Apple is prioritizing an enhanced Siri and its Apple Intelligence strategy instead.

Background

Apple faces pressure to catch up in generative AI and AI search as rivals integrate conversational AI into core products. Perplexity made a name for itself with an AI search engine that returns direct answers with citations. Reported Perplexity valuation sits in the low tens of billions. For investors, an Apple Perplexity deal would offer immediate AI powered search and conversational features across Apple devices.

Key findings

• Apple intelligence strategy appears focused on internal development rather than mega deals.
• Perplexity acquisition rumors circulated alongside interest in other AI startups like Mistral.
• Siri AI upgrade timeline is reportedly aimed at roughly March 2026.
• Wall Street pressure for Apple AI acquisition is driven by desire for faster competitive parity with Google and Microsoft.
• Apple historically prefers smaller strategic acquisitions and organic innovation over large scale buys.

Strategic trade offs

Buying Perplexity could rapidly boost Apple artificial intelligence capabilities and create a strong market story, but it carries integration risk and cultural fit concerns. Building AI powered Siri preserves control and protects the Apple ecosystem, yet 18 months of internal development is a long time in AI search competition. Apple must weigh strategic AI investments against the risk of falling behind in the conversational AI wars.

What it means for users and investors

For users, a supercharged Siri experience or a Perplexity powered search within Apple devices would improve natural language search and conversational interactions. For investors, acquisition offers fast momentum while organic build reduces upfront cost and aligns with Apple’s long term approach to machine learning and proprietary models.

Conclusion

Apple passing on Perplexity in favor of internal development would signal confidence in its ability to scale generative AI inside the Apple ecosystem. The true test will come when the upgraded Siri launches. If Apple intelligence delivers competitive AI search and conversational features, the build strategy will be vindicated. If competitors move faster, pressure for strategic AI acquisitions will grow.

Stay tuned as Apple navigates this pivotal moment in AI strategy, balancing the benefits of acquisition against the value of homegrown innovation.