The AI startup Perplexity just shook hands on a massive $750 million deal with Microsoft. This three-year agreement allows Perplexity to use Microsoft’s Azure cloud platform to power its services. While Nvidia already backs the startup, this new partnership gives Perplexity the muscle it needs to run some of the most advanced AI systems in the world.
Specifically, the deal gives Perplexity access to Microsoft’s “Foundry” program. This setup lets the startup run heavy-duty models from big names like OpenAI, Anthropic, and Elon Musk’s xAI. A spokesperson for Perplexity confirmed the move to Bloomberg, noting that they need these “frontier models” to keep their technology at the cutting edge.
Interestingly, Perplexity isn’t walking away from its current partners. Even though they are teaming up with Microsoft, they still use Amazon Web Services (AWS) as their main cloud provider. The company told Bloomberg that they haven’t shifted their budget away from Amazon yet.
This makes for a pretty awkward situation, considering Perplexity’s history with Amazon. Last year, Amazon actually sued the startup over a shopping feature that uses “agents” to buy things for people automatically. Amazon claimed these bots secretly broke into customer accounts and tried to trick the system by acting like human browsers.
Despite that legal battle, Perplexity is moving full steam ahead. By locking in this deal with Microsoft, the startup ensures it has the computing power and the software variety to compete with the biggest names in the industry. It shows that in the fast-moving world of AI, companies are willing to work with multiple tech giants at once, even if they are fighting in court at the same time.
