By Storyboard18
Publication Date: 2026-01-30 07:29:00
AI search startup Perplexity has entered a three-year agreement with Microsoft that will see it use the tech giant’s Azure cloud infrastructure to run a broad mix of artificial intelligence models, according to people familiar with the matter.
The deal, valued at about $750 million, gives the Nvidia-backed company access to Microsoft’s Foundry platform, which aggregates models from multiple developers including OpenAI, Anthropic and xAI. Microsoft confirmed the partnership, describing Foundry as Perplexity’s primary platform for sourcing AI models under the new agreement.
Perplexity, which has positioned itself as an alternative to traditional search engines, said the arrangement is aimed at expanding access to so-called frontier models rather than replacing existing cloud relationships. The company’s main cloud provider remains Amazon Web Services, and spending has not been shifted away from AWS as part of the Microsoft deal.
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The agreement shows a broader industry trend in which fast-growing AI startups are diversifying their infrastructure and model suppliers to reduce dependence on any single ecosystem, while maintaining flexibility as model performance and costs continue to evolve.
For Microsoft, the deal strengthens Azure’s role as a neutral platform for hosting competing AI systems, even as it deepens its own partnership with OpenAI. It also reflects increasing demand…
