Meta Explored Acquisition of AI Startup Perplexity Before Investing in Scale AI

2 days ago

Meta Platforms Inc. considered acquiring AI search startup Perplexity AI Inc. before proceeding with a significant investment in Scale AI. According to sources, the two companies could not reach an agreement, and the acquisition talks were not pursued further. The financial terms of the discussions remain undisclosed, but Perplexity recently secured a new funding round, valuing the company at $14 billion.

This previously unreported negotiation highlights Meta CEO Mark Zuckerberg's strategy to enhance the company's position in the AI race through acquisitions and strategic hires. The discussions with Perplexity occurred before Meta finalized a $14.3 billion investment in Scale AI, acquiring a 49% stake in the data-labeling startup. Neither Meta nor Perplexity provided immediate comments on the matter.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

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