In a significant development within the artificial intelligence sector, the innovative startup Perplexity AI has entered into a substantial three-year agreement valued at $750 million with Microsoft Azure. This strategic partnership represents a notable expansion of Perplexity's cloud infrastructure strategy beyond its established, long-term collaboration with Amazon Web Services (AWS).
Multi-Cloud Strategy Takes Center Stage
The newly forged commitment will empower Perplexity to leverage Microsoft's advanced Foundry service for deploying sophisticated AI models. According to reports citing individuals with direct knowledge of the arrangement, this includes accessing models from leading AI research organizations such as OpenAI, Anthropic, and xAI. These sources requested anonymity due to the private nature of the business discussions.
However, a spokesperson for Perplexity has provided crucial clarification regarding the company's ongoing relationship with Amazon. The representative confirmed that this new Microsoft deal does not involve shifting existing spending away from Amazon Web Services, which has historically served as the startup's primary cloud infrastructure provider.
Perplexity's Dual Partnership Approach
In an official statement provided to Bloomberg, the Perplexity spokesperson elaborated on the company's strategic positioning. "We are excited to partner with Microsoft for access to frontier models from xAI, OpenAI and Anthropic. AWS remains Perplexity's preferred cloud infrastructure provider, and we're excited to announce expansions of that partnership in the coming weeks," the statement revealed.
This announcement follows a period of legal tension between Perplexity and Amazon last year. In November 2025, Amazon initiated legal proceedings against the AI startup, seeking to prevent consumers from utilizing Perplexity's AI tools for shopping on Amazon's online marketplace. Perplexity responded strongly, characterizing Amazon's actions as bullying behavior and framing them as "a threat to user choice."
Historical Context and AWS Relationship
Interestingly, during that same contentious month, Perplexity AI CEO Aravind Srinivas disclosed that his company had secured "hundreds of millions" in financial commitments from AWS. The startup has built a substantial portion of its business operations on Amazon's cloud platform, particularly utilizing the Bedrock service to access Anthropic's models for powering its search engine functionality.
Srinivas has maintained a visible presence within the AWS ecosystem, regularly appearing as a featured speaker at AWS conferences. During a notable 2023 appearance, he publicly declared his decision to go "all-in" on Amazon's cloud infrastructure. In reciprocal fashion, AWS has frequently highlighted Perplexity as a pioneering AI customer demonstrating cutting-edge applications of its services.
Strategic Implications for Microsoft
For Microsoft, securing the Perplexity partnership represents a strategic victory in its broader initiative to position Azure as the premier platform for developing AI applications and deploying diverse vendor models. Microsoft has long offered models through its close partnership with OpenAI, and in November 2025, the company further expanded its portfolio by striking a similar agreement with Anthropic.
During a recent earnings call, Microsoft CEO Satya Nadella emphasized the company's comprehensive approach, stating, "Our customers expect to use multiple models as part of any workload. And we offer the broadest selection of models of any hyperscaler." He revealed that over 1,500 Microsoft Foundry customers have already utilized both OpenAI and Anthropic models, with the number of customers spending over $1 million per quarter on Foundry services growing by nearly 80% in the quarter ending December 2025.
Competitive Landscape and Industry Trends
Perplexity AI operates as a high-value startup within an intensely competitive environment, facing formidable rivals including Alphabet Inc.'s Google and OpenAI in its mission to transform how people search for information online. The company has not raised capital on the same scale as OpenAI and Anthropic, both of which have recently announced series of infrastructure agreements.
This multi-cloud approach reflects a broader industry trend where large enterprises increasingly rent cloud services from multiple providers. This strategy serves dual purposes: accessing unique technological capabilities while avoiding excessive dependence on any single vendor. This tendency has accelerated during the AI era, as businesses experiment with new tools and establish agreements with both model creators and the cloud providers whose servers host this sophisticated software.
The Perplexity-Microsoft agreement exemplifies how AI startups are navigating complex partnership landscapes, balancing innovation access with infrastructure stability in a rapidly evolving technological ecosystem.
