Pathikrit Bose

Wed, Jun 25, 2025, 8:40 AM5 min read

Celebrated host of the popular CNBC show “Mad Money” Jim Cramer reckons iPhone-maker Apple (AAPL) should act on rumors and acquire AI startup Perplexity. Long touted by many as being behind in the AI race, Cramer believes that “the market wants growth, so you have to buy growth,” and that Apple should buy growth in a big way by snapping up Perplexity.

The argument makes sense as Apple’s “Magnificent Seven” peers like Microsoft (MSFT), Meta (META), Google (GOOGL), and Amazon (AMZN) all have either their own generative AI platforms or have investments those from startups. Moreover, Meta’s recent mammoth $14 billion investment to acquire a 49% stake in data company Scale AI only reinforces the fact that the AI race is only going to get hotter and Apple risks falling behind if it does not act fast.

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Apple has always been known for its differentiation. Whether through its operating systems, hardware, privacy-first policy, or sleek designs, Apple has consistently outclassed its competition, which has resulted in its flagship iPhone and other devices reaching a global installation base of over 2 billion.

Perplexity offers a similar edge as it is unlike other generative AI platforms. Known for its real-time, citation-backed answers, Perplexity is apt for research. Moreover, it offers access to several powerful language models, including GPT-4 Turbo, Claude 3, and Mistral, allowing users to cross-check results and benefit from the strengths of different models within one platform. This multi-model approach provides flexibility and robustness in generating accurate and diverse outputs, unlike single-model platforms. Also, its Pro Model is priced competitively at $20 per month, comparable to its peers.

Meanwhile, Perplexity is purportedly in the middle of a funding round, aiming to raise $500 million at a valuation of $14 billion. Despite the fact that this is a lower valuation than what the company expected in March, it is still an almost 56% jump from the December 2024 valuation of $9 billion. However, with a $28.2 billion cash pile, it would not be an issue for Apple to come up with the money if it does decide to make a sizable acquisition.