Bloomberg reported on the 20th that Apple is considering acquiring the artificial intelligence (AI) startup PurpleCityAI (hereinafter referred to as PurpleCity).
According to Bloomberg on the same day, a source reported that Adrian Perica, Apple's head of mergers and acquisitions, reviewed the possibility of acquiring PurpleCity with Eddie Cue, head of the institutional sector, and key AI decision-makers. However, the discussions are in the early stages, and no proposal has yet been made to PurpleCity, nor has it been determined whether the discussions will lead to a formal acquisition proposal.
PurpleCity is known as an AI-based search engine startup competing against Google, the world's largest search engine company. It offers an AI search service that answers user questions by utilizing real-time web-based information. With a recent valuation of $14 billion after raising funds, if the acquisition goes through, it would become Apple's largest acquisition to date.
The review of the acquisition of PurpleCity is interpreted as a response from Apple, which is lagging behind competitors in AI technology, to secure AI talent and technology. Apple launched its own AI system called Apple Intelligence last year, but it has been evaluated as failing to adequately respond to the intensifying AI competition, with key features like the voice assistant Siri’s upgrade indefinitely postponed.
There is also an advantage to accelerating the development of an AI-based search engine through the acquisition of PurpleCity. This is due to the potential for their longstanding partnership with Google to be disrupted by antitrust lawsuits from U.S. regulators. Currently, Apple has set Google as the default search engine on its devices, earning approximately $20 billion in revenue annually through this arrangement.
Earlier, it was reported that Meta, the parent company of Facebook, also attempted to acquire PurpleCity. According to U.S. economic media CNBC, a source stated, 'Meta explored the possibility of acquiring PurpleCity, but the efforts fell through, and the negotiations were concluded by mutual agreement.' The reason for the negotiations breaking down has not been disclosed.