Perplexity strikes Microsoft AI cloud deal amid Amazon legal fight

Perplexity strikes Microsoft AI cloud deal amid Amazon legal fight

By @CPOfficialtx
Publication Date: 2026-01-30 01:20:00

Perplexity, an American AI-powered search engine company, has concluded a $750 million deal with Microsoft Corp., a leading American multinational technology company. Under this deal, the AI startup will use Microsoft’s Azure cloud service.

However, it is worth noting that this agreement was struck at a time when Perplexity was involved in a legal dispute with Amazon.com Inc., its long-standing cloud partner.

Despite this legal dispute, sources close to the situation, speaking on condition of anonymity, acknowledged that the three-year deal is a significant milestone for Perplexity, offering several key advantages. One major advantage is that the agreement will enable the AI-powered search engine firm to use AI models through Microsoft’s Foundry service, including those developed by OpenAI, Anthropic, and xAI.

Regarding the matter, a Perplexity representative commented, “We are thrilled to team up with Microsoft for access to advanced models from X, OpenAI, and Anthropic.”

Microsoft and Perplexity ink a major technology contract

Following the spokesperson’s remarks, several Perplexity investors raised concerns about the firm’s relationship with Amazon, sparking heated industry discussions. In an attempt to address this controversy, the representative argued that the AI startup will maintain its expenditure with Amazon Web Services, which has long been the firm’s preferred cloud provider, as part of the Microsoft deal.

“AWS continues to be…