Apple’s CEO Tim Cook has publicly confirmed a shift toward aggressive mergers and acquisitions, signaling a new era in the company’s strategy to ramp up artificial intelligence (AI) capabilities. Facing mounting competition from tech giants like Google and Microsoft, Apple has already completed seven acquisitions in 2025, leveraging its massive cash reserves to accelerate its AI expansion and enhance products like Siri and other privacy-focused features across its ecosystem.

Analysts have identified five standout candidates as potential acquisition targets that could radically bolster Apple’s position in the AI arms race. The most prominent among them is Perplexity AI, a search engine innovator credited with delivering exceptional query capabilities and real-time information retrieval. Securing Perplexity could immediately strengthen Siri and give Apple an edge in natural language processing.

Other noteworthy targets include Anthropic, an independent AI research lab with expertise in safety and advanced conversational models. Anthropic’s technology could provide more secure and responsible AI features, keeping Apple competitive and user-focused. Thinking Machines has also been highlighted, particularly for its strengths in AI-powered personalization and dynamic user experiences. Such competencies would allow Apple to further tailor its devices to individual users, aligning with the company’s long-standing emphasis on privacy and customization.

Rounding out analysts’ picks are Rewind AI—a startup focused on machine memory and context-rich user histories—and Hugging Face, which operates as an industry leader in open-source AI development. Acquiring either of these firms would deepen Apple’s AI expertise and foster innovation in device-dependent personalization and autonomy.

Despite this list, Apple appears to be taking a cautious approach, favoring targeted deals over blockbuster acquisitions for now. With rivals investing heavily and AI rapidly reshaping consumer tech, analysts suggest that Apple will continue hunting for strategic partners and pioneering startups to stay at the forefront of innovation. For Apple, the question is no longer if it will make bold moves in AI but which company will be its next game-changing acquisition.