A nearly 3-year-old AI startup has reportedly caught the attention of two of the largest and most influential tech companies, underscoring the fierce competition for AI talent and push to become leaders in what some believe will be the next major evolution of the internet.

In our opinion, any such deal … would likely be positive for shares that are currently in the penalty box given Apple is largely viewed as an AI laggard,” wrote the BofA an

According to Bloomberg, Apple has held early internal discussions — led by its head of mergers and acquisitions — about a possible acquisition of Perplexity AI, the AI-powered search startup founded by Aravind Srinivas. While no formal offers have been made, top Apple executives have considered multiple scenarios involving the company.