Apple Plans Siri AI Upgrade To Outpace Perplexity As Wall Street Pushes $30 Billion Buyout: Report
Apple Inc. is reportedly developing an AI-powered web search tool called "World Knowledge Answers" for Siri, aiming for a 2026 launch. This comes as Wall Street pressures Apple to acquire Perplexity AI, valued at $18-20 billion, with an estimated acquisition cost of $30 billion. Analysts suggest that such a move could boost Apple's stock, which has underperformed this year. The new system will provide summarized responses to queries, similar to ChatGPT and Google AI. Apple is also evaluating Google-developed AI models for Siri.
Apple Inc. AAPL is reportedly developing its own artificial intelligence-powered web search tool, internally dubbed “World Knowledge Answers,” for integration into Siri by 2026.
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Perplexity AI demonstrates the growth Apple seeks, processing 780 million queries with over 20% month-over-month growth and achieving $150 million in annual recurring revenue, according to a Fortune report. The startup has attracted backing from Nvidia Corp. NVDA, SoftBank and Amazon.com Inc. founder Jeff Bezos.
World Knowledge Answers Take Shape
The new system will function as an “answer engine” similar to ChatGPT and Alphabet Inc.‘s GOOG GOOGL Google AI overviews, providing summarized responses to search queries, Bloomberg’s Mark Gurman reported, citing sources.
Apple and Google reached a formal agreement for Apple to evaluate Google-developed AI models to help power the voice assistant.
Apple executives reportedly held internal discussions about potentially acquiring Perplexity AI, with Mergers and Acquisitions head Adrian Perica discussing the possibility with services chief Eddy Cue.
Apple did not immediately respond to Benzinga's request for comment.
Analyst Pressure Mounts for Bold AI Moves
Wedbush Securities analyst Dan Ives has also called a Perplexity acquisition a “no-brainer,” estimating the deal would cost approximately $30 billion for a company valued at $18-20 billion. “With the AI revolution, Apple is on the outside looking in,” Ives told Investor’s Business Daily.
Josh Brown of Ritholtz Wealth Management projected Apple shares would hit all-time highs if the company acquired Perplexity. Apple’s stock has underperformed among the Magnificent Seven companies this year, down roughly 2.5% year-to-date as the only member with negative returns.
Market Position
According to Benzinga Pro data, the tech giant closed at $239.69 on Friday, up 0.03%.
Benzinga’s Edge Stock Rankings indicate that AAPL has a positive price trend across all time frames. Know how its momentum lines up with other well-known names.
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