Meta approached artificial intelligence startup Perplexity AI about a potential takeover bid before ultimately investing $14.3 billion into Scale AI, CNBC confirmed on Friday.
The two companies did not finalize a deal, and Perplexity ultimately walked away from the discussions, according to a source familiar with the matter who asked not to be named because of the confidential nature of the negotiations.
Bloomberg earlier reported the talks between Meta and Perplexity. Perplexity declined to comment. Meta did not immediately respond to CNBC’s request for comment.
Meta’s attempt to purchase Perplexity serves as the latest example of Mark Zuckerberg’s aggressive push to bolster his company’s AI efforts amid fierce competition from OpenAI and Google parent Alphabet. Zuckerberg has grown agitated that rivals like OpenAI appear to be ahead in both underlying AI models and consumer-facing apps, and he is going to extreme lengths to hire top AI talent, as CNBC has previously reported.
Meta now has a 49% stake in Scale after its multibillion-dollar investment, though the social media company will not have any voting power. Scale AI’s founder Alexandr Wang, along with a small number of other Scale employees, will join Meta as part of the agreement.
Earlier this year, Meta also tried to acquire Safe Superintelligence, which was reportedly valued at $32 billion in a fundraising round in April, as CNBC reported on Thursday.
Daniel Gross, the CEO of Safe Superintelligence, and former GitHub CEO Nat Friedman are joining Meta’s AI efforts, where they will work on products under Wang. Gross runs a venture capital firm with Friedman called NFDG, their combined initials, and Meta will get a stake in the firm.
OpenAI CEO Sam Altman said on the latest episode of the “Uncapped” podcast, which is hosted by his brother, that Meta had tried to poach OpenAI employees by offering signing bonuses as high as $100 million with even larger annual compensation packages.
“I’ve heard that Meta thinks of us as their biggest competitor,” Altman said on the podcast. “Their current AI efforts have not worked as well as they have hoped and I respect being aggressive and continuing to try new things.”
–CNBC’s Kate Rooney contributed to this report
WATCH: Meta tried to buy Perplexity before Scale AI deal
About The Author
