Perplexity Signs $750 Million AI Cloud Deal With Microsoft, Report Says
GeokHub
Jan 29 (GeokHub) — Artificial intelligence startup Perplexity has signed a three-year agreement worth approximately $750 million with Microsoft to use its Azure cloud infrastructure, Bloomberg News reported on Thursday, citing people familiar with the matter.
Under the deal, Nvidia-backed Perplexity will be able to run a wide range of artificial intelligence models through Microsoft’s Foundry program. These include advanced systems developed by OpenAI, Anthropic, and xAI, according to the report.
Microsoft confirmed the partnership in a statement to Reuters.
“Perplexity has chosen Microsoft Foundry as its primary AI platform for model sourcing under a new multi-year agreement,” a Microsoft spokesperson said.
Perplexity did not immediately respond to a request for comment from Source. However, a spokesperson for the company told Bloomberg News that the partnership with Microsoft was focused on gaining access to leading “frontier” AI models from OpenAI, xAI, and Anthropic.
The spokesperson also said the agreement does not represent a shift away from Amazon Web Services (AWS), which remains Perplexity’s primary cloud provider.
The deal underscores intensifying competition among major cloud providers to secure high-profile AI startups as customers, as demand for computing power continues to surge amid rapid advances in generative AI.
Perplexity has been drawing attention beyond its technology partnerships. Last year, Amazon filed a lawsuit against the startup over its “agentic” shopping feature, alleging the tool improperly accessed Amazon customer accounts and disguised automated activity as human behavior. Perplexity has previously disputed those claims.
Industry Context & Impact
Microsoft’s agreement with Perplexity highlights Azure’s growing role as a hub for AI development, positioning the company as a key infrastructure provider even for startups that also rely on rival cloud platforms.
For Perplexity, the deal offers broader access to multiple cutting-edge AI models without exclusive dependence on a single provider, giving the company greater flexibility as competition in AI search and assistant tools accelerates.
