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.

Perplexity AI's surge in conversational search tech has sparked a bidding war between Apple and Meta, reshaping the future of AI-powered browsing and search.

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