Apple has been exploring ways to strengthen its artificial intelligence strategy, and new reports reveal the company recently discussed potential acquisitions of Mistral AI and Perplexity. Both are fast-growing players in the AI sector, but Apple has not yet pursued a deal, reflecting its cautious approach to major acquisitions.
According to a report from The Information, Apple weighed the possibility of acquiring both companies but internal concerns around cost, integration, and long-term fit meant discussions did not advance. Unlike rivals such as Microsoft, Google, and Amazon, which have invested billions into AI startups and partnerships, Apple has historically avoided making large-scale purchases. Instead, it favors smaller, targeted acquisitions that integrate smoothly into its ecosystem.
Mistral AI, a French startup, has quickly gained attention for its open-weight large language models and substantial backing from European investors. Its technology has positioned it as a strong challenger to OpenAI and Anthropic, making it one of the most valuable AI players in Europe. Perplexity, meanwhile, has built an AI-powered search engine that combines natural language understanding with live internet data, drawing comparisons to next-generation Google alternatives. Apple’s interest in these companies signals its recognition of where it lags in generative AI, but its leadership remains hesitant about the risks and costs involved in such large-scale moves.
Apple’s strategy in AI has so far relied on building its own Apple Intelligence framework into iOS 26, macOS Tahoe, and other platforms. This approach emphasizes privacy, on-device processing, and ecosystem control. However, compared to competitors who are making bold acquisitions and partnerships, Apple’s incremental progress has led to growing concerns that it may be falling behind. Microsoft’s investment in OpenAI, Google’s partnership with Anthropic, and Amazon’s stake in Anthropic all show how aggressively rivals are securing talent and technology.
Historically, Apple’s acquisition playbook has been far more conservative. Its biggest deal was the $3 billion purchase of Beats in 2014, but since then the company has favored smaller acquisitions like Shazam and specialized AI startups such as Laserlike. These deals typically involve integrating niche technology or expertise rather than taking on large, independent companies. This history helps explain why Apple remains cautious about acquisitions like Mistral and Perplexity, which would represent a major departure from its usual strategy.
At the same time, Apple has reportedly held talks with Google about licensing Gemini to enhance Siri and Apple Intelligence. This illustrates that Apple is considering partnerships as an alternative to acquisitions. The discussions echo the long-standing $20 billion-plus agreement that makes Google the default search engine on iPhones, showing Apple is willing to work with competitors if the arrangement strengthens its services. By exploring both acquisitions and partnerships, Apple appears to be weighing all options but remains reluctant to commit to high-cost, high-risk bets.
Industry analysts argue that Apple’s reluctance to pursue big-ticket acquisitions could limit its ability to compete in the fast-moving AI race. Yet others suggest the company’s long-term advantage lies in developing AI that aligns with its core values of user privacy, device integration, and ecosystem continuity. For now, Apple remains hesitant but continues to evaluate opportunities as it shapes its AI roadmap.
