TL/DR –
Apple CEO Tim Cook hinted in the company’s Q2 earnings call that he’d consider accelerating Apple’s AI development efforts using the company’s $36 billion cash reserve. In the call, Cook indicated his willingness to pursue a big deal, prompting speculation that the reports of Apple’s interest in major AI player Perplexity may be credible. Perplexity, which offers an AI chatbot and operates on a freemium model, aligns with Apple’s focus on user experience, has over 22 million monthly active users, and could bring annualized revenue of $150 million this summer, suggesting this acquisition could help Apple address its criticized AI strategy.
Apple CEO’s Future Plans and AI Investments
Apple CEO, Tim Cook, is known for his tight-lipped approach to company announcements, often surprising loyal fans and investors with new products at the right time. This strategy is similar to the company’s “one more thing” mentality, inherited from founder Steve Jobs.
Investors often scrutinize Cook’s statements during conference calls, hoping to decipher Apple’s future plans. During Apple’s second-quarter earnings conference call, Cook hinted at Apple’s vast cash reserves and its ambitions in the field of artificial intelligence.
Apple’s solid June quarter surpassed analysts’ expectations, with revenue reaching $94 billion, a 10% increase from last year, and $5 billion more than Wall Street had predicted. The company’s massive profit boosted its cash reserves to about $36 billion, up from approximately $30 billion last year. This financial strength allows Apple to invest heavily in its products and software, a move investors are keen to see.
Despite competitors like Google heavily investing in artificial intelligence, Apple’s AI progression has been criticized for being too slow. Speculation over the potential of Tim Cook’s conservative approach to miss out on key opportunities in the AI industry is a matter of concern for many investors.
However, Cook acknowledged during Apple’s earnings conference call that he is considering boosting Apple’s AI efforts using the company’s extensive cash reserves. When asked about the potential for a significant M&A, Cook’s response was straightforward, stating that Apple is open to M&As that would accelerate their roadmap and are not limited to a certain company size.
Though he did not announce any solid plans at the moment, his willingness to consider a significant deal implies that the reported interest in Perplexity, a major AI player, could be valid.
Perplexity Acquisition Could Accelerate Apple’s AI Development
Perplexity, an AI chatbot similar to Google and OpenAI’s ChatGPT, offers unique features. It has its proprietary model, Sonar, built on Meta Platforms’ open-source code, Llama. It also utilizes rival chatbots, including R1 from DeepSeek, and subscribers to its Pro tier can toggle between other large language models like OpenAI, Gemini, Anthropic’s Claude, and Elon Musk’s Grok.
An acquisition of Perplexity would immediately give Apple an existing platform for monetizing AI. Perplexity operates on a freemium model, providing a free introductory subscription and paid services, and emphasizes real-time responses — a design that aligns with Apple’s focus on user experience.
Cook mentioned that Apple has acquired seven companies this year, however, these were small deals that had little impact on the company’s vast cash reserves. Acquiring Perplexity would be a different story. Launched in 2022 alongside ChatGPT, Perplexity has over 22 million monthly active users and could generate annual revenue of $150 million this summer, according to About Chromebooks data.
Perplexity isn’t publicly traded, and it’s reportedly valued at $18 billion. It holds about 6% of the AI search market share.
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