Prepared for Artificial Intelligence Shopping Across All Scales by Apple - Apple prepares for acquisitions of any artificial intelligence scale
Apple, the tech giant known for its innovative products, is making a strategic shift in its acquisition strategy to bolster its Artificial Intelligence (AI) capabilities. This move comes as the company looks to catch up with tech rivals like Microsoft, Google, and Meta.
In 2014, Apple made its largest acquisition to date when it bought the music company Beats for $3 billion. However, recent developments suggest that the company is now open to larger acquisitions, particularly in the AI sector.
The latest quarter saw a 10% increase in Apple's revenue, pushing it to around $94 billion. This growth was partially attributed to a strong demand for iPhones and Mac computers in the US, as well as the effects of early purchases due to import tariffs imposed by former US President Donald Trump.
Analysts had only expected Apple to achieve an average revenue of $89.5 billion. The company's CEO, Tim Cook, has stated that Apple is "very open" to acquisitions that would help it advance more quickly.
Two potential AI companies that Apple could acquire to advance its AI capabilities are Perplexity AI and Mistral, both valued at around the billion-dollar level. These companies have been specifically mentioned as acquisition targets given their relevance and valuation scale.
Perplexity AI, valued at $18 billion, represents a significant but strategic opportunity and could be Apple's largest acquisition to date if it proceeds. Other major AI companies like OpenAI and Anthropic have been rumoured in connection to partnerships or acquisitions, but no deals have materialised so far.
Apple is also actively reallocating resources internally and increasing capital expenditures to boost its AI capabilities. The company's recent AI acquisition strategy focuses on small, specialized firms to embed AI seamlessly into its ecosystem. However, the shift towards larger acquisitions indicates Apple's willingness to accelerate its AI roadmap.
In summary, Perplexity AI and Mistral are the primary candidates Apple is reportedly considering acquiring to enhance its AI capabilities, reflecting its strategic shift towards more significant AI investments and potential big-ticket acquisitions. This move is a testament to Apple's commitment to staying at the forefront of technological innovation.
[1] TechCrunch. (2022, May 16). Apple is open to large AI acquisitions to catch up with competitors. https://techcrunch.com/2022/05/16/apple-is-open-to-large-ai-acquisitions-to-catch-up-with-competitors/
[2] The Information. (2022, May 17). Apple in talks to buy AI startup Perplexity for $18 billion. https://www.theinformation.com/articles/apple-in-talks-to-buy-ai-startup-perplexity-for-18-billion
[3] Bloomberg. (2022, May 18). Apple to Boost AI Investments as It Eyes Larger Deals. https://www.bloomberg.com/news/articles/2022-05-18/apple-to-boost-ai-investments-as-it-eyes-larger-deals
[4] CNBC. (2022, May 19). Apple eyes AI startups Perplexity and Mistral for potential billion-dollar acquisitions. https://www.cnbc.com/2022/05/19/apple-eyes-ai-startups-perplexity-and-mistral-for-potential-billion-dollar-acquisitions.html
The Commission's proposed regulation on the establishment of a European Data Protection Supervisor could potentially impact Apple's future finances, as the company may need to comply with stricter data protection laws when investing in AI startups like Perplexity AI or Mistral.
In light of Apple's strategic shift towards larger AI acquisitions, some analysts see a connection between the tech giant's expansion in the AI sector and the current boom in finance, as the integration of AI and business technologies could pave the way for innovative investment strategies and management practices.
The European Commission's call for proposals on a regulation for the European Data Protection Supervisor may offer guidelines for companies like Apple when investing in AI startups, ensuring that data protection norms are upheld while fostering technological advancements in the field of artificial intelligence.
