Meta Reportedly Approached Perplexity Before $14.3B Scale AI Deal
Before pouring $14.3 billion into Scale AI, Meta reportedly explored acquiring AI startup Perplexity AI, sources familiar with the discussions confirmed to CNBC. Though talks occurred, no deal was finalized, and the acquisition never materialized.According to two individuals close to the negotiations—speaking anonymously due to the confidential nature of the matter—discussions were either “mutually dissolved” or ended when Perplexity walked away.
While Meta declined to comment, Perplexity also remained silent, consistent with how both companies have handled media scrutiny around sensitive acquisition talks. The story was first reported by Bloomberg.
Meta’s AI Arms Race Intensifies
The attempted Perplexity acquisition reflects Meta CEO Mark Zuckerberg’s growing urgency to strengthen the company’s AI capabilities. Meta is racing to catch up with competitors like OpenAI and Google’s parent company Alphabet, both of which are currently seen as leaders in the AI space.Zuckerberg has reportedly grown frustrated with Meta’s pace of AI development and is aggressively targeting top AI talent. Sources tell CNBC that Meta has extended signing bonuses of up to $100 million to lure employees away from rival companies like OpenAI.
Massive Investment in Scale AI and Executive Moves
Meta’s latest move—a $14.3 billion investment for a 49% stake in Scale AI—highlights just how serious the company is about scaling up its AI ambitions. Although Meta won’t hold voting power at Scale, several key figures from the company, including founder Alexandr Wang, will join Meta as part of the strategic partnership.Scale AI, which supports data infrastructure for machine learning applications, brings valuable expertise to Meta as it tries to narrow the gap with competitors.
More Acquisition Attempts: Safe Superintelligence
The Perplexity talks are not Meta’s only recent attempt at strengthening its AI portfolio through acquisitions. CNBC also reported that Meta tried to purchase Safe Superintelligence, a company recently valued at $32 billion during its April fundraising round.Although that deal didn’t materialize either, Meta managed to secure the involvement of Daniel Gross (CEO of Safe Superintelligence) and Nat Friedman (former GitHub CEO), who will now work under Wang within Meta’s AI division. Both are partners in the venture firm NFDG, which Meta will gain a stake in as part of the arrangement.
OpenAI CEO Acknowledges Meta’s Competitive Pressure
On a recent episode of the podcast Uncapped—hosted by OpenAI CEO Sam Altman’s brother—Altman addressed Meta’s aggressive tactics, including high-dollar offers to recruit OpenAI employees.“I’ve heard that Meta thinks of us as their biggest competitor,” Altman said. “Their current AI efforts have not worked as well as they have hoped, and I respect being aggressive and continuing to try new things.”
What This Means for the AI Landscape
Meta’s aggressive investment strategy signals a turning point in the AI talent and infrastructure race. As the tech giants compete for supremacy, moves like these—whether acquisitions or billion-dollar investments—highlight how rapidly the stakes are rising.With competition intensifying and strategic alliances forming, the battle for AI dominance is only beginning—and Meta is making it clear it won’t be left behind.
