Perplexity Secures $750 Million AI Cloud Agreement With Microsoft
An AI startup has signed a three-year agreement valued at $750 million to use a major cloud computing platform, according to a recent media report citing people familiar with the matter. As a result, the deal positions the company to expand its artificial intelligence operations at scale. At the same time, it reflects growing demand for high-performance cloud infrastructure among AI developers.
The agreement enables the startup to run a wide range of AI models through a specialized cloud program. In particular, this includes systems developed by OpenAI, Anthropic, and xAI. Consequently, the arrangement gives the company access to multiple advanced models under a single platform.
Access to Models and Cloud Strategy
According to the report, the startup is backed by Nvidia and will use the cloud provider’s Foundry program as part of the deal. Moreover, this setup allows flexibility in sourcing different frontier models. A spokesperson explained the company’s platform choice in a statement.
“Perplexity has chosen Microsoft Foundry as its primary AI platform for model sourcing under a new multi-year agreement,” a Microsoft spokesperson told Reuters.
Meanwhile, the startup did not respond directly to a request for comment. However, a spokesperson told Bloomberg News that the partnership was aimed at gaining access to advanced models from multiple developers. In addition, the spokesperson said the company has not shifted spending away from its primary cloud provider as part of the new agreement.
Legal Context and Broader Implications
At the same time, the company continues to face legal challenges unrelated to the cloud deal. Last year, a major e-commerce firm sued the startup over its automated shopping feature. According to the lawsuit, the feature placed orders on behalf of users while allegedly disguising automated activity as human browsing.
Despite this, the new agreement highlights continued confidence in the startup’s growth prospects. Overall, the deal underscores how access to diverse AI models and robust cloud infrastructure is becoming central to competition in the fast-evolving AI sector.
