Meta's Interest in Perplexity AI Preceded Scale AI Investment
Meta recently initiated discussions with artificial intelligence startup Perplexity AI regarding a potential acquisition. Although negotiations took place, the two companies ultimately did not finalize a deal, sources familiar with the matter revealed. These talks occurred ahead of Meta's significant $14.3 billion investment into Scale AI.
Negotiations Ended Without Agreement
According to insiders, the discussions between Meta and Perplexity ended on mutually agreeable terms, with some reports suggesting that Perplexity opted to walk away from the potential acquisition. Both parties have remained tight-lipped on the specifics, declining to comment on the situation.
Meta's Strategy Amid Fierce AI Competition
This failed acquisition attempt highlights Meta’s aggressive strategy to strengthen its position in artificial intelligence, especially as it faces intense competition from OpenAI and Google's parent company. Meta’s leadership is reportedly keen to close the gap in AI development and consumer applications, hiring top talent and investing heavily in promising startups.
Scale AI Investment and Other Acquisitions
Meta now holds a 49% stake in Scale AI, though without voting rights, following its multibillion-dollar infusion. Additionally, several key Scale AI team members are joining Meta’s ranks as part of this partnership.
Earlier this year, Meta also sought to acquire Safe Superintelligence, a startup valued at roughly $32 billion, as part of its continued efforts to expand its AI capabilities. Notably, Safe Superintelligence’s CEO Daniel Gross and former GitHub CEO Nat Friedman have joined Meta’s AI division to advance new projects.
Talent War in AI Heats Up
The AI talent acquisition battle is becoming ever more intense, with Meta reportedly offering signing bonuses up to $100 million and even larger annual packages to lure top engineers away from competitors like OpenAI. OpenAI’s CEO acknowledged Meta’s aggressive stance, noting that despite current setbacks, Meta remains determined to push forward in the AI space.
What This Means for the AI Landscape
Meta’s recent moves underline a sharper focus on artificial intelligence as a cornerstone of its future growth. By investing heavily in startups and recruiting leading minds, Meta hopes to catch up to—and perhaps surpass—rivals who have taken early leads in both core AI models and end-user applications.
