Apple’s famed product strategy may finally be failing it. According to Wedbush analyst Dan Ives, the tech giant’s AI ambitions are “well behind” those of Google, Microsoft, and even Meta. His warning: if Apple doesn’t make a bold move soon, namely acquiring Perplexity AI, it could lose relevance in the generative AI race.
“The clock has struck midnight on Apple’s AI strategy,” Ives wrote in a note to investors, saying the company’s reluctance to open-source, experiment publicly, or court developer ecosystems has left it “five steps behind the innovation curve.”
A Quiet Giant in a Loud Race
While OpenAI, Google DeepMind, and Anthropic have dominated headlines with major AI breakthroughs, Apple has taken a “silent runner” approach. Its AI research remains internal, its chips impressive but closed off, and its Siri assistant still lacks the conversational muscle seen in ChatGPT or Claude.
As mentioned by Millionaire MNL, Apple’s approach may have worked in the era of polished hardware rollouts, but generative AI rewards iteration, collaboration, and speed. Traits the company has historically avoided.
Why Perplexity?
Perplexity, an AI-powered search engine co-founded by ex-OpenAI and Meta researchers, has emerged as a fan favorite for its clean interface, factual answers, and ad-free model. Ives argues that acquiring Perplexity would give Apple immediate access to a ready-made AI product, a top-tier team, and a direct rival to Google Search.
“Apple needs a flagship AI product, not just enhancements buried in iOS updates,” Ives wrote. “Perplexity offers that edge, and they can integrate it across the Apple ecosystem overnight.”
Playing Catch-Up in a $7 Trillion Race
Apple has been pouring billions into AI, particularly through its custom silicon, but its public-facing AI presence is nearly invisible compared to rivals. Microsoft’s Copilot is everywhere. Google’s Gemini is becoming default on Android. Meta is embedding AI across Instagram and WhatsApp.
“If Apple waits until 2026 to roll out a compelling AI assistant, it might be too late,” Ives warned.
As Millionaire MNL has reported, the generative AI market is expected to top $1.3 trillion by 2032, and being a passive player is no longer an option, even for Apple.
