Prime Highlight
- Perplexity has entered a major cloud partnership with Microsoft, strengthening Azure’s position as a key platform for fast-growing AI startups.
- The deal gives Perplexity added flexibility and backup infrastructure as it competes with much larger AI search rivals.
Key Facts
- The agreement is worth $750 million over three years and allows Perplexity to run AI models via Microsoft’s Foundry service.
- Perplexity was valued at about $20 billion as of September 2025 and continues to use multiple cloud providers, including AWS.
Background
AI search startup Perplexity has signed a $750 million agreement with Microsoft Corporation to use its Azure cloud infrastructure over the next three years. The deal allows Perplexity to run advanced artificial intelligence models through Microsoft’s Foundry service, according to people familiar with the matter cited by Bloomberg.
The partnership strengthens Microsoft’s efforts to make Azure a leading platform for AI development. By giving access to models from OpenAI, Anthropic, and xAI, Microsoft wants to attract startups that need strong computing power to grow fast. For Perplexity, the agreement provides added capacity and flexibility as it competes in the crowded AI search market.
The move comes at a sensitive time for Perplexity, which is involved in a federal legal dispute with Amazon.com, its main cloud provider. The conflict follows the launch of Perplexity’s “Comet” shopping agent, a tool that Amazon claims breaks its rules by acting like a human user during transactions. Despite the dispute, Perplexity said its relationship with Amazon Web Services continues for now and that further cooperation is expected soon.
Perplexity said the Microsoft deal gives it access to a wider range of advanced models and offers operational backup as it scales. The company faces strong competition from major players such as Google, OpenAI and Anthropic, all of which have far greater resources.
Valued at around $20 billion as of September 2025, Perplexity is under pressure to expand its infrastructure fast. Microsoft’s Foundry platform now supports its search tools and puts more focus on automated shopping and commerce features.
The deal shows a wider trend where AI companies use several cloud providers to lower risk and support long-term growth.
