In its Q3 2025 earnings, Apple reported a hefty $23.4 billion profit from a total revenue of $94.04 billion, building a cash reserve of epic proportions. While traditionally, such funds could pave the way for acquisitions, Apple’s traction in the realm of generative AI remains somewhat elusive. Rumors suggest a potential interest in acquiring Perplexity, which could bolster Apple’s competitiveness against industry giants like OpenAI, Microsoft, and Google. However, the tech behemoth seems more focused on acquiring smaller companies for now.
Despite analysts recommending a $40 billion acquisition of Perplexity to gain an edge in AI, Apple continues to prioritize smaller-scale purchases. During a recent earnings call, it was reported that Apple held $133 billion in cash as of June. Although the revenue figures may delight investors, there’s still some concern regarding the lack of substantial progress in AI development. Apple CEO Tim Cook has highlighted increasing investments but acquiring big-ticket companies isn’t typical for Apple.
This year, the company has acquired about seven firms, none with a high price tag. The most notable acquisition to date remains Beats, which cost $3 billion. Analysts suggest spending $40 billion on Perplexity could secure a lead in generative AI, particularly as Apple’s cash reserve could afford such a purchase multiple times over. Yet, Apple’s strategy has long favored smaller, strategic acquisitions.
There’s scant information about whether any recent acquisitions were AI-focused. Critics argue that without expanding externally, Apple might struggle to introduce AI-driven services and products that rival existing chatbots like ChatGPT. As of now, acquiring Perplexity doesn’t seem imminent, but surprises could be on the horizon.
