Ives: Apple AI innovation “is not coming from inside the walls of Apple Park”

Another day, another Dan Ives note urging Apple to acquire AI search engine Perplexity, lest it face a “historic strategic black eye” and be left behind in the “AI Revolution” by competitors like OpenAI, which has been poaching its AI talent.

The Wedbush Securities analyst said Apple’s failure with its in-house AI suggests “it’s becoming crystal clear that any innovation around AI at Apple is not coming from inside the walls of Apple Park,” and added that he thinks “AI monetization strategy at Apple could be worth up to $75 per share.”

He wrote:

“Covering Apple for many years we understand the DNA well in Cupertino and there is a belief they can develop anything internally better at Apple Park that an outside acquisition will give them; unfortunately we believe those days are gone... the time has come Apple needs to acquire Perplexity to significantly boost its AI platform. Perplexity is the ‘no brainer’ deal to help launch Apple’s AI strategy.”