Apple Explored AI Acquisitions Amid Internal Divisions on Strategy

Apple Inc. (AAPL) entertained discussions this summer about potential acquisitions in artificial intelligence, including Paris-based Mistral and search startup Perplexity, according to people familiar with the matter. The tech giant's cautious approach contrasts with rivals like Alphabet Inc. (GOOGL) and Meta Platforms Inc. (META), which have aggressively pursued multibillion-dollar AI deals.

Internal debates reveal a strategic rift among Apple's leadership. Services chief Eddy Cue, architect of the $3 billion Beats acquisition, has advocated for transformative deals—having previously pushed for purchases of Tesla Inc. (TSLA) and Netflix Inc. (NFLX). Software engineering head Craig Federighi leads a faction preferring in-house development, despite Apple's $133 billion war chest.

The hesitation comes at a critical juncture. As AI becomes the new battleground for tech supremacy, Apple risks being perceived as lagging—a concern already reflected in investor sentiment. The company's historical pattern of small, talent-focused acquisitions may no longer suffice in an era where rivals are making existential bets on artificial intelligence.