Will Apple's iPhone 17 AI Shine? It Depends on Two Potential Acquisitions

As Apple teases the iPhone 17 launch, insiders say the tech giant is in serious talks to acquire two AI firms—France’s Mistral and U.S.-based Perplexity—potentially spending billions. For users, this could redefine the iPhone 17’s AI, but uncertainties linger.

The Two AI Targets

Mistral: Europe’s Terminal-Friendly Unicorn

Founded just two years ago, Mistral (dubbed "Europe’s OpenAI") has a $10 billion valuation, with NVIDIA backing its Series B round last year. Its edge? Lightweight large models like Mistral-7B, perfect for smartphones. This matches Apple’s "device-first" focus (iPhones, iPads), promising smoother on-device AI without constant cloud reliance. Currently, Mistral seeks $1 billion in new funding to hit a $10 billion valuation, adding complexity to Apple’s plans.

Perplexity: The "Google Killer" for Search

Backed by NVIDIA and Amazon, Perplexity offers conversational search—direct answers instead of links, earning it "Google Killer" status. It would complement Siri, which only handles basic tasks (alarms, messages). With Perplexity, users could get step-by-step answers to complex questions. Founded by ex-OpenAI members, Apple already eyed it earlier this year.

Why Apple Hurries for AI Acquisitions

Apple lags in generative AI. Samsung’s Galaxy has real-time AI photo editing; Google’s Pixel uses Gemini Ultra for AI-powered photography. Apple’s Siri is outdated, and iOS 18’s AI features were panned as "copying Android." Acquiring Mistral and Perplexity lets Apple skip从头研发 (start-from-scratch) R&D. It excels at hardware integration but lacks big-model and AI search expertise—gaps these firms fill.

Will the Deals Happen?

Unclear. Perplexity denied rumors but said, "We’re acquiring small firms, not being acquired"—non-committal. Apple and Mistral stay silent, standard for big firms until deals close. History warns: Apple missed Tesla and Netflix before. Critics doubt it too. One user noted: "XAI built a top platform in 2 years, but Apple lacks leadership to integrate AI—look at Siri." CEO Tim Cook once said Apple would enter AI "when less dangerous," showing caution that slows innovation.

What It Means for iPhone 17 Users

If deals work, the iPhone 17 could have smooth on-device AI (via Mistral) and a smarter Siri (via Perplexity). Without them, its AI will be incremental. Should Apple buy these firms? Will the iPhone 17’s AI impress? Share your thoughts!

Reference Link:
[1]https://www.reuters.com/business/apple-internally-discussed-buying-mistral-perplexity-information-reports-2025-08-26/
[2]https://macdailynews.com/2025/08/26/apple-executives-discuss-acquiring-ai-firms-mistral-perplexity/