A potential deal between Apple Inc and AI startup Perplexity would mark a strategic shift for the iPhone maker, but analysts at Jefferies said the benefits are unclear and the move could be interpreted as a defensive response to rising regulatory pressure on its long-standing relationship with Google.
Apple Inc (NASDAQ:AAPL, ETR:APC) is reportedly weighing either a partnership or full acquisition of Perplexity AI, a search engine startup recently valued at $14 billion. The move would aim to enhance Apple’s AI capabilities by integrating Perplexity into its Safari browser and Siri virtual assistant.
Jefferies analysts noted that the deal would be relatively modest in terms of financial impact but could be viewed as a hedge against potential fallout from a US Department of Justice antitrust case targeting Google’s search dominance.
“A Perplexity deal would be a relatively small financial investment but offers unclear benefits,” the analysts wrote. They estimate the near-term earnings per share (EPS) impact from a $14 billion acquisition would be less than $0.10, or just 1% of their FY25 EPS forecast.
The commentary comes as Apple faces the prospect of changes to its lucrative search engine agreement with Google, which pays the company an estimated $20 billion to $25 billion annually to remain the default search engine on Apple devices. That agreement is under scrutiny as a US judge ruled in 2024 that Google had violated antitrust law, with potential remedies—such as ending exclusive distribution deals—expected as soon as August 2025.
Jefferies estimates those payments from Google account for as much as 18% of Apple’s operating profit, raising the stakes for Apple to explore alternatives like Perplexity.
An acquisition of Perplexity would also represent Apple’s largest-ever deal, far surpassing its $3 billion acquisition of Beats in 2014. However, Jefferies noted Apple’s historical difficulty in integrating large acquisitions, including the Beats and Intel modem businesses, and flagged reputational risks stemming from allegations against Perplexity over unauthorized content use.
While the deal could help Apple scale up its AI push, analysts stressed it would not significantly alter the company’s financial trajectory. “Given Apple’s AI efforts have been a bit underwhelming, we believe a deal would likely be construed as defensive in nature, not a positive catalyst,” they wrote.