Why Is Apple Struggling in the AI Race?

While Google has Gemini and Microsoft-backed OpenAI has ChatGPT, Apple’s AI push through Apple Intelligence appears limited. Compared to rivals, Apple is still searching for a breakthrough strategy to compete in the fast-moving AI market.
Did Apple Consider Buying Mistral AI or Perplexity?
According to The Information, Apple executives discussed acquiring either Mistral AI or Perplexity to strengthen its AI presence.
Eddy Cue, Apple’s Services chief, supported the idea. He has previously proposed acquisitions like Netflix and Tesla, which Tim Cook rejected.
Other executives opposed the idea, arguing Apple could build its own superior model instead of spending billions.
What Makes Mistral AI Important?
Founded in 2023 as a European AI alternative to OpenAI and Anthropic.
Focuses on open-weight large language models (LLMs) that deploy faster than competitors.
Backed by Nvidia and recently valued at $6 billion.
Why Is Perplexity a Big AI Player?
Founded by former OpenAI scientist Aravind Srinivas.
Valued at around $18 billion with funding from Amazon and Nvidia.
Competes with ChatGPT and Google Gemini as one of the strongest AI platforms.
Despite rumors, Perplexity stated it is not aware of any Apple offers.
Does Apple Usually Make Big Acquisitions?
Not really. Apple tends to avoid mega-deals:
Biggest acquisitions include Beats ($3B) and Intel’s modem business ($1B).
Buying Perplexity or Mistral would require billions, making it one of Apple’s largest deals ever.
Is Apple Working With Google for AI?
Recent reports suggest Apple is in talks with Google to integrate its Gemini AI model into Apple Intelligence. The model could run locally on Apple servers. Apple also explored using models from OpenAI and Anthropic.
What About Siri and ChatGPT?
Currently, Siri uses OpenAI’s ChatGPT for certain queries. But Apple hasn’t ruled out creating a stronger in-house AI model while also considering external partnerships.