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FILE PHOTO: A view shows the Microsoft logo on the day of the Hannover Messe, one of the world's largest industrial trade fairs with this year's partner country being Canada, as both Canada and the European Union face new U.S. tariffs, in Hanover, Germany, March 31, 2025. REUTERS/Fabian Bimmer/File Photo
Technology
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CNBC TV18•30-01-2026, 12:25

Microsoft Secures $750M Cloud Deal with AI Firm Perplexity, Expanding Azure's AI Reach

  • •Perplexity, an AI startup, signed a $750 million, three-year deal with Microsoft to utilize its Azure cloud services.
  • •This agreement allows Perplexity to deploy AI models, including those from OpenAI, Anthropic, and xAI, through Microsoft’s Foundry service.
  • •Despite the new deal, Perplexity states that Amazon Web Services (AWS) remains its preferred cloud infrastructure provider, with plans for further partnership expansions.
  • •The deal boosts Microsoft's Azure as a key platform for building AI applications and deploying diverse AI models, aligning with CEO Satya Nadella's strategy.
  • •Perplexity faces stiff competition from Google and OpenAI in its mission to redefine online information search, while also navigating a legal dispute with Amazon.

Why It Matters: Microsoft's $750M deal with Perplexity strengthens Azure's AI offerings, despite Perplexity's ongoing AWS partnership.

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