Apple is exploring major AI investments that could include acquiring startups or expanding internal capabilities. Eddy Cue strongly favors acquiring an AI search company, while other executives, including software chief Craig Federighi, favor building AI technology in-house. Mistral AI is a French startup focused on open-weight language models that are smaller, faster, and capable on tasks like programming and reasoning. Perplexity builds a search-and-answer service that combines AI models with real-time web indexing and aims to offer an alternative to Google. Acquisitions would cost billions; Apple historically makes few such large purchases. CEO Tim Cook signaled readiness to increase investment through data centers or acquisitions to close the AI gap with competitors.
Other top executives, including software chief Craig Federighi, are said to favor developing Apple's own AI technology in-house. Mistral AI is a French startup founded in 2023 that works on so-called open-weight language models. These models are smaller, faster, and easier to implement than many competing systems, but still deliver strong performance on complex tasks such as programming and reasoning. The company profiles itself as a European alternative to American players such as OpenAI and Anthropic.
Acquiring one of these companies would cost Apple billions of dollars. Historically, the company rarely makes such large purchases. Examples include Beats ($3 billion) and Intel's modem division ($1 billion). If the $20 billion agreement with Alphabet, which makes Google the default search engine on Apple devices, is overturned in the US courts, an investment in an AI search company could still become necessary.
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