🧔♂️ A friendly human may check it before it goes live. More news here
Apple said to eye acquisition of Mistral, Perplexity
Apple reportedly has discussed the possibility of acquiring French AI startup Mistral and Perplexity.
The talks were internal, and no deal has been announced.
CEO Tim Cook signaled last month that Apple is open to larger AI-related acquisitions, a shift from its traditionally conservative approach to mergers and acquisitions.
Mistral, backed by Nvidia, was valued at over US$6 billion after its series B last year and is now seeking to raise US$1 billion at a US$10 billion valuation, the Financial Times reported.
Bloomberg earlier said Apple executives also considered a bid for Nvidia and Jeff Bezos-backed Perplexity.
Apple, Mistral, and Perplexity did not immediately respond to Reuters’ requests for comment.
🔗 Source: Reuters
🧠 Food for thought
1️⃣ Apple’s acquisition strategy shifts dramatically from small startups to billion-dollar AI targets
The Mistral and Perplexity discussions represent a fundamental departure from Apple’s historically conservative M&A approach.
From 2013 to 2017, Apple spent only $5.1 billion total on acquisitions, with the $3 billion Beats deal representing more than half of that spending2. The remaining 44 acquisitions during this period were typically early-stage startups valued below $100 million2.
Now Apple is internally discussing deals that could individually exceed its entire five-year M&A spending. Mistral is seeking funding at a $10 billion valuation, while Perplexity recently reached an $18 billion valuation13.
This shift aligns with CEO Tim Cook’s recent signal that Apple was open to larger AI-related acquisitions to accelerate its roadmap, marking a clear departure from the company’s traditional preference for developing technology in-house1.
The scale difference is striking. Apple previously held over $260 billion in cash while spending the least on M&A compared to other major tech firms2. These potential AI acquisitions would represent some of the largest deals in the company’s history.
2️⃣ Competitive AI pressure forces Apple to consider external expertise acquisition
Apple’s consideration of these AI companies reflects the company’s acknowledgment that it’s trailing rivals in AI deployment despite making 12 AI-related acquisitions over five years4.
