Meta Platforms engaged in negotiations with the AI search startup Perplexity AI Inc. regarding a potential acquisition prior to announcing a significant investment in Scale AI, according to sources familiar with the situation.
The discussions did not lead to an agreement, and the two companies opted to terminate the talks, as disclosed by insiders who preferred to remain anonymous due to the confidential nature of the conversations. Details regarding the financial terms that were being negotiated remain undisclosed. Perplexity recently completed a funding round that valued the company at approximately $14 billion (about Rs. 1,21,438 crore).
Additionally, Meta sought to recruit Perplexity’s Chief Executive Officer, Aravind Srinivas, to join its new “superintelligence” team aimed at developing advanced AI technologies, according to the sources.
These previously unreported negotiations reflect Meta CEO Mark Zuckerberg’s strategy of pursuing acquisitions and high-profile hires to enhance the company’s competitive edge in the rapidly evolving AI landscape. The talks occurred prior to Meta’s announcement of a $14.3 billion (approximately Rs. 1,24,052 crore) investment in Scale AI, which garnered a 49 percent stake in the data labeling firm.
Neither Meta nor Perplexity have publicly commented on the discussions.
Founded in 2022, Perplexity has gained prominence as a startup leveraging generative AI to innovate basic internet services. The company competes with Alphabet Inc.’s Google by providing an AI-driven tool that summarizes search results, cites sources for its information, and aids users in refining their inquiries for optimal responses. Moreover, Perplexity is in the process of developing an AI-powered web browser.
Zuckerberg’s frustrations with the pace of AI advancements at Meta have prompted a targeted effort to attract premier AI talent across the industry with attractive compensation. The company has successfully recruited Alexandr Wang, the former CEO of Scale AI, in addition to securing leading researchers from Google DeepMind and Sesame AI Inc.
However, not every professional is inclined to transition to Meta. OpenAI CEO Sam Altman mentioned in a recent podcast that some of his team members received offers from Meta totaling $100 million (roughly Rs. 867 crore) in signing bonuses and even more substantial compensation packages, yet chose to remain with OpenAI.
Meta is reportedly in discussions with former GitHub CEO Nat Friedman to bring him onto the new AI team, according to insiders. Moreover, the company is also pursuing a collaboration with Daniel Gross, the CEO of Safe Superintelligence, which is a research organization established by ex-OpenAI chief scientist Ilya Sutskever, as indicated by sources.
The company has engaged in preliminary talks over a computing agreement that could allow Safe Superintelligence to utilize Meta’s data center infrastructure, according to the source. Safe Superintelligence representatives did not respond to requests for comment immediately.
Other major technology companies, such as Google and Amazon.com, have been positioning themselves as essential parts of the AI ecosystem by supplying chips and cloud computing resources to AI startups. In contrast, Meta has yet to pursue this strategy.
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