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.