Perplexity, an AI search startup, has signed a $750 million agreement with Microsoft to utilize its Azure cloud infrastructure. This three-year commitment allows Perplexity to deploy frontier models via Microsoft’s Foundry service, positioning Azure as a premier destination for AI application development.

The deal comes as Perplexity faces a federal legal battle with Amazon, its primary cloud provider. Amazon filed a lawsuit to prevent Perplexity from using AI agents for automated shopping on its marketplace. This partnership with Microsoft provides Perplexity with necessary redundancy as it competes against giants like Google.

Despite the legal friction, Perplexity maintains a foundational relationship with Amazon Web Services, indicating a strategic diversification of its cloud dependencies. Valued at roughly $20 billion, Perplexity is under pressure to scale its infrastructure rapidly, especially as it competes with rivals like OpenAI and Anthropic.

Microsoft’s Foundry service will serve as a critical secondary engine for Perplexity’s ambitious search and 'agentic commerce' features, underscoring a broader trend of AI firms diversifying their cloud dependencies to continue scaling operations.