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's potential buyout of Perplexity could boost its AI presence, diversify revenue, and address regulatory risks. See why I maintain a Hold rating on AAPL.

In our opinion, any such deal … would likely be positive for shares that are currently in the penalty box given Apple is largely viewed as an AI laggard,” wrote the BofA an