Apple's AI Acquisition Targets: Tim Cook's Shopping List
Apple, a company historically known for its cautious and often secretive acquisition strategy, is reportedly embarking on an aggressive new phase of mergers and acquisitions, particularly targeting promising artificial intelligence startups. This strategic pivot, spearheaded by CEO Tim Cook, signals Apple’s determination to close the perceived AI gap with its tech rivals and deeply embed advanced AI capabilities across its vast ecosystem of devices and services. Cook has publicly affirmed that Apple is “very open” to acquisitions of any size that can accelerate its AI roadmap, describing AI as “one of the most profound technologies of our lifetime”. The company has already acquired seven firms this year, though not all were AI-focused, reflecting a clear intent to fortify its position in the rapidly evolving AI landscape.
This intensified focus comes as Apple faces mounting pressure in the AI race, with competitors like Microsoft, Google, and Meta having made significant strides and investments in the field. While Apple introduced its “Apple Intelligence” suite in 2024, some features, including a major Siri overhaul, have seen delays, highlighting the urgency for accelerated development. The ongoing “talent war” in Silicon Valley, which has seen some senior AI researchers move from Apple to competitors like Meta, further underscores the need for strategic talent and technology acquisition.
Bankers, venture capitalists, and analysts are closely watching Apple’s moves, identifying several potential AI targets that could significantly bolster its capabilities. One prominent name frequently cited is Perplexity AI, an AI search startup. Reports suggest Apple has engaged in discussions regarding Perplexity, which recently secured substantial funding, valuing it at over $18 billion. An acquisition of this magnitude would mark Apple’s largest to date, far surpassing its $3 billion purchase of Beats. While some analysts, like Morgan Stanley, have expressed skepticism about Apple’s need for an AI search acquisition, the company’s reported interest highlights a potential desire to redefine how users interact with information on its platforms.
Another European contender on Apple’s speculative shopping list is Mistral AI, a French startup known for developing open-source AI models. Acquiring Mistral could provide Apple with deep expertise in foundational AI models and potentially offer a flexible, customizable base for integrating AI across its software stack, from iOS to macOS.
Beyond search and foundational models, Anthropic has emerged as a significant potential target or partner. As a leading competitor to OpenAI, Anthropic’s focus on “safe AI development” aligns well with Apple’s long-standing emphasis on user privacy and ethical AI practices. A partnership or acquisition could provide Apple with robust large language model capabilities to enhance Siri and other “Apple Intelligence” features, without compromising its core privacy principles.
Two other companies mentioned in analyst discussions are Cohere and Databricks. Cohere, a prominent enterprise AI platform, could bring advanced natural language processing and generation capabilities, potentially enhancing various Apple services and developer tools. Databricks, known for its data analytics and AI platform, could offer significant advantages in processing and leveraging the vast amounts of data within Apple’s ecosystem, from iCloud to Apple Intelligence, enabling more personalized and intelligent user experiences.
Tim Cook has emphasized Apple’s willingness to invest heavily in AI infrastructure, including a “substantial” increase in data center spending to support on-cloud AI processing. This, combined with the strategic pursuit of key AI startups, signals a comprehensive approach to securing Apple’s future in the AI-driven era. While Apple’s AI journey has faced scrutiny for its pace, its commitment to significant investment and strategic acquisitions suggests a determined effort to not just catch up, but to define the next generation of intelligent technology.