Meta's AI Ambitions: Failed Perplexity AI Acquisition Talks Precede Scale AI Investment

Meta Discussed Buying Perplexity Before Investing in Scale AI

Meta Platforms Inc. held discussions with artificial intelligence search startup Perplexity AI Inc. about a possible takeover before moving ahead with a multibillion-dollar investment in Scale AI, according to people familiar with the matter. The two companies couldn't come to an agreement and decided not to pursue the deal, said the people, who asked not to be named as the details of the talks aren't public. The financial terms under discussion could not be learned. Perplexity recently closed a new round of funding at a $14 billion valuation.

Perplexity AI walked away from potential Meta deal before Zuckerberg's Scale AI stake

The two companies did not finalize a deal, and Perplexity ultimately walked away from the discussions, according to a source familiar with the matter who asked not to be named because of the confidential nature of the negotiations. Bloomberg earlier reported the talks between Meta and Perplexity. Perplexity declined to comment. Meta did not immediately respond to CNBC's request for comment. Meta's attempt to purchase Perplexity serves as the latest example of Mark Zuckerberg's aggressive push to bolster his company's AI efforts amid fierce competition from OpenAI and Google parent Alphabet. Zuckerberg has grown agitated that rivals like OpenAI appear to be ahead in both underlying AI models and consumer-facing apps, and he is going to extreme lengths to hire top AI talent, as CNBC has previously reported.

Meta considers Perplexity AI acquisition before Scale AI investment - Bloomberg By Investing.com

Investing.com -- Meta Platforms Inc (NASDAQ:META). discussed a potential acquisition of AI search startup Perplexity AI Inc. before finalizing its recent investment in Scale AI, according to Bloomberg, citing people familiar with the matter. The companies were unable to reach an agreement and decided against pursuing the deal, said the sources, who requested anonymity because the discussions were private. Financial terms of the potential acquisition were not disclosed. Perplexity recently secured funding at a $14 billion valuation. These previously unreported talks highlight Meta CEO Mark Zuckerberg's strategy to use acquisitions and high-profile hiring to advance the company's position in artificial intelligence. The discussions occurred before Meta finalized its $14.3 billion investment for a 49% stake in data-labeling company Scale AI earlier this month.