Meta held talks to acquire Perplexity before the massive Scale AI deal

Meta held talks to acquire Perplexity before the massive Scale AI deal
Meta held talks to acquire Perplexity before the massive Scale AI deal

Meta approached artificial intelligence (AI)-powered startup Perplexity AI regarding a potential acquisition before a massive investment in Scale AI of $14.3 billion.

Both the companies have yet to finalise an agreement, according to CNBC.

One person familiar with the negotiations stated that it was “mutually dissolved;” however, another person familiar with the matter stated that Perplexity has pulled out of a potential deal.

Both companies have not commented on the talks yet.

Meta’s effort to acquire Perplexity indicates Mark Zuckerberg’s push to strengthen its company amid an intense battle with OpenAI and Google’s Alphabet.

Frustrated that competitors are ahead in AI models and apps.

Meta holds a 49% equity in Scale following its multibillion-dollar investment, though the platform doesn't have any voting power.

Earlier this year, the social media network also tried to purchase Safe Superintelligence, which was reportedly valued at $32 billion in a fundraising round in April.

Daniel Gross, CEO of Safe Superintelligence, and former GitHub CEO Nat Friedman are set to join Meta’s AI team. They are currently running a venture capital company, NFDG, and Meta will get equity in it.

Meanwhile, OpenAI CEO Sam Altman disclosed in the “Uncapped” podcast that Meta has tried to offer OpenAI staff as well, offering greater incentives and pay packages.

Altman stated that Meta aims to outdo its competitor OpenAI and mentioned that Meta’s AI projects haven’t performed as hoped; however, appreciated their push to enhance.

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