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.

Apple Inc.’s stock has had a rough go of it during the first half of the year. President Donald Trump’s tariffs caused have weighed on the company, as investors continue to gauge what the full cost to its business will be.

The interest from both Silicon Valley giants raises an important question: why are they eyeing a much smaller company like Perplexity?