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| Apple CEO Tim Cook said in July that the Big Tech juggernaut is considering more M&A. Jeff Chiu/AP |
Apple CEO Tim Cook has sparked a wave of speculation across Silicon Valley after revealing that the tech giant is actively pursuing acquisitions of all sizes. For a company known for its conservative approach to dealmaking, Cook’s announcement was a notable shift and with $133 billion in cash reserves, Apple has plenty of room to maneuver.
Speaking during the company’s earnings call, Cook said, “We’re very open to M&A that accelerates our road map,” referring to mergers and acquisitions. “We basically ask ourselves whether a company can help us accelerate a road map. If they do, then we’re interested.”
This rare openness from Apple’s leadership has ignited industry chatter, especially as Apple faces criticism over its slow response to the AI revolution. The company’s stock is down roughly 10% this year, and many investors have voiced concern that Apple is falling behind rivals in the artificial intelligence arms race.
“There’s a lot of pressure on Apple’s leadership to do something,” said Gil Luria, head of technology research at DA Davidson. “What we heard on the earnings call was an acknowledgment from the leadership team: ‘We understand the concern, and we’re exploring both investment and acquisition opportunities.’”
While Apple has traditionally preferred smaller, strategic acquisitions, Cook’s comments suggest that may no longer be the case. “We are not stuck on a certain size company,” he noted. Cook also revealed that Apple has already acquired seven smaller companies this year from “all walks of life,” executing deals at a rate of roughly one every few weeks.
Notably, Apple hasn’t made a major acquisition since it bought Beats Electronics for $3 billion in 2014. But with the AI landscape shifting rapidly, many believe it’s time for a bolder move. local press asked bankers, venture capitalists, and analysts what startups Apple should consider acquiring. Here’s what they said.
1. Perplexity
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| Perplexity CEO Aravind Srinivas. Kimberly White/Getty Images for TechCrunch |
What it does: AI-powered search engine
Who recommends it: Jim McVeigh, Gil Luria, Jordan Thibodeau, Dan Ives
Why it makes sense:
Perplexity is a fast-growing AI search company that’s caught the attention of several influential voices in tech. Despite having investors like Nvidia and Jeff Bezos, it remains independent a rare status in the AI space.
Gil Luria sees a compelling reason for Apple to make a move, especially with the Department of Justice’s ongoing antitrust case against Google. If the court forces Apple to drop Google as its default search engine, Perplexity could be a logical and innovative replacement.
Jim McVeigh argues that integrating Perplexity’s generative AI into Apple’s ecosystem would supercharge both Siri and Spotlight search. It would allow Apple to close the gap with competitors like Google and Microsoft, who are embedding GenAI deeply into their products.
Dan Ives calls a deal with Perplexity a “no-brainer,” noting that Apple needs a transformative AI partner to regain momentum. “Investors want to see Apple rip the Band-Aid off and go big either through a bold acquisition or a major partnership.”
Former Google M&A exec Jordan Thibodeau agrees. “This is the obvious pick,” he said. “Perplexity is being boxed out by Google and OpenAI, and I think [CEO Aravind Srinivas] would accept a deal. Apple can give him the resources to train foundational models and stop depending on OpenAI.”
Why it might not happen:
There are two primary concerns: first, whether regulators would approve such a deal given the antitrust spotlight on Big Tech; and second, the $18 billion price tag not to mention the potential culture clash between Apple and a hypergrowth VC-backed startup.
Perplexity’s head of communications responded to BI saying, “We’re humbled that so many of the best phone makers in the world are interested in Perplexity, but aside from our own acquisitions, we are unaware of any M&A discussions that involve Perplexity.”
2. Mistral AI
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| Mistral AI cofounder and CEO Arthur Mensch. LUDOVIC MARIN/POOL/AFP via Getty Images |
What it does: Open-source large language model (LLM) developer based in Europe
Who recommends it: Gil Luria, Ben Thompson
Why it makes sense:
With top AI labs like OpenAI, Anthropic, and Google increasingly locked into Big Tech alliances, Apple’s options for catching up are narrowing. Luria suggests looking at second-tier foundation model startups like Mistral, which are talented but resource-constrained.
“Mistral has strong technical talent, but they’ve lacked the massive GPU infrastructure that others have,” Luria explained. “If Apple were to provide that, it could turn Mistral into a formidable competitor.”
Ben Thompson also champions the idea, noting that Mistral is currently seeking to raise funding at a $10 billion valuation less than half of what Apple spends on stock buybacks in a single quarter. “If Apple were ever going to make a move in AI, this is the company and now is the time,” he wrote.
Why it might not happen:
Mistral is already addressing its GPU limitations by working with Nvidia. Its CEO has publicly said the company is not for sale and is considering an IPO instead. Moreover, Apple could explore other promising AI labs in the same category without acquiring Mistral specifically.
Mistral did not respond to BI’s request for comment.
3. Oomii
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| Oomii's website. Oomii |
What it does: Develops retinal scanning display technology for AR/VR
Who recommends it: Jim McVeigh
Why it makes sense:
Apple has invested heavily in spatial computing through the Vision Pro, and Oomii’s advanced retinal scanning tech could greatly enhance the product’s capabilities. It might also introduce new innovations for future iPhone and iPad models.
“This acquisition would bolster Apple’s defenses against Meta in the VR space,” said McVeigh. He added that the company’s lack of VC funding and simple cap table make it easier to acquire.
Why it might not happen:
Oomii’s limited scale and uncertain market traction may cause hesitation. Apple is known for pursuing acquisitions with clear commercial validation and Oomii may not yet meet that bar.
Oomii did not respond to BI’s inquiry.
4. Synthpop
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| Synthpop's website. Synthpop |
What it does: AI software for healthcare administration
Who recommends it: Jim McVeigh
Why it makes sense:
Apple has long been building out its HealthKit ecosystem, and Synthpop could be a smart bolt-on acquisition to automate healthcare tasks. The startup’s emphasis on user privacy and security aligns well with Apple’s core values.
Synthpop also holds IP that supports insurance and hospital systems in the U.S., and McVeigh notes the company’s founders bring deep AI and healthcare expertise. Best of all? It’s an early-stage company, so the acquisition cost would be relatively low.
Why it might not happen:
Synthpop is still focused primarily on the U.S. market. Expanding globally would require additional capital and navigating complex international healthcare regulations areas that may give Apple pause.
Synthpop did not respond to requests for comment.
5. Thinking Machines Lab
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| Former OpenAI Mira Murati founded Thinking Machines Lab. PATRICK T. FALLON via Getty Images |
What it does: AI lab founded by former OpenAI CTO Mira Murati
Who recommends it: Sarah Guo
Why it makes sense:
Sarah Guo, a tech investor in Thinking Machines, believes a partnership between Apple and Murati’s lab could be “game-changing.” She argues that integrating Thinking Machines’ AI research with Apple’s proprietary mobile data could revitalize Siri and other user experiences.
“Even if Siri has lagged in the AI race, this could radically change its future,” Guo said. She emphasizes that Apple should partner with Thinking Machines, not necessarily acquire it.
Why it might not happen:
Thinking Machines has already raised $2 billion at a $20 billion valuation and seems committed to independence. Murati’s vision appears focused on building a standalone powerhouse, not selling to Big Tech.
Tim Cook’s announcement has opened the floodgates for speculation about Apple’s next big move. While regulatory scrutiny and high valuations may limit its options, experts agree that Apple cannot afford to sit on the sidelines any longer especially as competitors surge ahead in AI and immersive technology.
Whether through a strategic acquisition or deep partnership, Apple’s next deal could determine how well it keeps pace in a rapidly evolving tech landscape.
