Meta approached Perplexity before massive Scale AI deal

Meta recently explored the possibility of acquiring artificial intelligence startup Perplexity AI prior to its significant $14.3 billion investment in Scale AI, as confirmed by CNBC on Friday. Sources familiar with the discussions, who chose to remain anonymous due to the sensitive nature of the talks, indicated that no agreement was reached between the two firms. Reports from Bloomberg initially highlighted the negotiations between Meta and Perplexity, although the latter opted not to comment on the matter. Meta has yet to respond to requests for clarification from CNBC regarding the discussions. This attempt to acquire Perplexity is part of CEO Mark Zuckerberg's broader strategy to enhance Meta's AI capabilities amidst escalating competition from industry giants such as OpenAI and Alphabet, Google's parent company. Zuckerberg's frustration over rivals like OpenAI leading in AI models and applications has prompted Meta to aggressively pursue top talent in the field. Following its investment, Meta now holds a 49% stake in Scale AI, but this will not grant the company any voting rights. As part of the investment arrangement, Alexandr Wang, the founder of Scale AI, along with a select group of employees, will transition to Meta’s team. Earlier this year, Meta also sought to acquire Safe Superintelligence, which was valued at approximately $32 billion during a funding round in April. Daniel Gross, CEO of Safe Superintelligence, along with former GitHub CEO Nat Friedman, will contribute to Meta's AI initiatives under Wang's leadership. Additionally, Meta will gain a stake in their venture capital firm, NFDG. In a recent podcast appearance, OpenAI CEO Sam Altman revealed that Meta has attempted to recruit OpenAI staff by offering signing bonuses that could reach $100 million, along with lucrative annual compensation. Altman remarked on the competitive dynamic, stating, "Meta views us as their primary rival. Their current AI initiatives haven't met expectations, but I admire their determination to innovate and explore new avenues."