Apple May Make Its Biggest Acquisition Yet to Fix AI Problem [Report]

Apple may have to spend big to fix its AI problem, and a new report from Bloomberg's Mark Gurman suggests the company has its eye on search startup Perplexity. In his latest newsletter, Gurman lays out a case for why Apple might need to make the largest acquisition in its history to get back in the game.Apple's current models are relatively underpowered. Its on-device model has 3 billion parameters — a measure of complexity and learning ability — while its cloud version has 33 billion. That's far behind what competitors like OpenAI and Google are deploying. Buying a multibillion-dollar AI company would represent a radical shift away from Apple's conservative M&A strategy. But sticking to business as usual risks leaving the company even further behind in the most important tech race since the smartphone.It's no secret that Apple's in-house AI work has reportedly floundered. While the company has touted its integrated approach and privacy features, it has largely "missed the AI moment." The public delay of its revamped, more capable Siri is the most visible sign of these struggles.Continue ReadingShare Article:Facebook, Twitter, LinkedIn, Reddit, EmailFollow iClarified:Facebook, Twitter, LinkedIn, Newsletter, App Store, YouTube

Jun 23, 2025 - 13:50

Apple May Make Its Biggest Acquisition Yet to Fix AI Problem [Report]

Apple may have to spend big to fix its AI problem, and a new report from Bloomberg's Mark Gurman suggests the company has its eye on search startup Perplexity. In his latest newsletter, Gurman lays out a case for why Apple might need to make the largest acquisition in its history to get back in the game.

Apple's current models are relatively underpowered. Its on-device model has 3 billion parameters — a measure of complexity and learning ability — while its cloud version has 33 billion. That's far behind what competitors like OpenAI and Google are deploying. Buying a multibillion-dollar AI company would represent a radical shift away from Apple's conservative M&A strategy. But sticking to business as usual risks leaving the company even further behind in the most important tech race since the smartphone.

It's no secret that Apple's in-house AI work has reportedly floundered. While the company has touted its integrated approach and privacy features, it has largely "missed the AI moment." The public delay of its revamped, more capable Siri is the most visible sign of these struggles.

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