Meta Tried to Acquire Perplexity Before $14.3 billion Scale AI Deal
Synopsis
Meta reportedly approached AI start-up Perplexity with interest in a possible acquisition, according to some sources confirmed by CNBC. The two companies had discussed the deal, but never moved ahead. People close to the…
Meta reportedly approached AI start-up Perplexity with interest in a possible acquisition, according to some sources confirmed by CNBC. The two companies had discussed the deal, but never moved ahead. People close to the matter at the talks ended without any agreement, with one noting that it was mutually dissolved and another suggesting that perplexity did not choose to take up the offer.
Zuckerberg’s Bold AI Strategy
The attempt to buy perplexity shows Meta CEO Mark Zuckerberg in increasing urgency to advance the company's AI capabilities. With stiff competition from OpenAI in Google, Meta has been on a mission to catch up, not just by creating its tech in-house AI tech, but also aggressively pursuing deals in AI talent across the country.
Meta’s recent $14.3 billion investment in scale AI shows this strategy very clearly. The investment gives Meta a 49% stake in the company and brings scale founder, Alexander Wang, and a few of his colleagues into Meta’s AI division.
Multiple Firms were Targeted by Meta AI
Perplexity was not Meta’s only target this year. Earlier in 2024, the company also attempted to buy Safe Superintelligence, which is a start-up valued at about 32 billion during a recent funding round. Though the deal didn’t reach the end, Meta still managed to bring some key people on board. Safe Superintelligence CEO Daniel Gross and former GitHUB CEO Nat Friedman will join Meta’s AI efforts under Wang’s leadership.
Meta AI’s Race With OpenAI Intensifies
The competition between OpenAI and Meta is heating up. Open AI CEO Sam Alterman recently revealed that Meta has been trying to take away their team members with offers of signing processes as high as $100 million.
He also commented, “I’ve heard that Meta thinks of us as their biggest competitor”, while also saying that he respects Meta’s willingness to keep pushing.
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At Inspirepreneurs Magazine, covering entrepreneurship, business failures, and the human stories behind the world's most ambitious founders. She writes at the intersection of strategy and storytelling.
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