On January 30, 2026, Perplexity AI announced a three-year, $750 million partnership with Microsoft to use Azure cloud services. Through this deal, Perplexity can use Microsoft’s Foundry program to run AI models like OpenAI, Anthropic, and xAI while still keeping Amazon Web Services (AWS) as its main cloud provider.
This partnership occurred at the same time as growing legal and operational tensions between Perplexity and Amazon over Agentic shopping tools, which began with a lawsuit filed in late 2025.
Main Points of the Microsoft Perplexity Partnership (January 30, 2026)
- Field structure: This is a 3-year, $750 million agreement for the Public City to use Microsoft Azure’s cloud infrastructure.
- Microsoft Foundry Access: The Agreement allows Perplexity to run AI models from OpenAI/Anthropic and xAI on Microsoft Foundry.
- Multi-Cloud Strategy: Even with this large investment, Perplexity says Amazon Web Services remains its main cloud provider and plans to expand its partnership, indicating a clear multi-cloud strategy.
- The strategic rationale: this partnership gives Perplexity more computing power and flexibility with AI models, while also strengthening Microsoft Azure’s role as a center for AI startups.
Concurrently, Amazon’s legal action (Agentic shopping)
- The issue: In November 2025, Amazon filed a lawsuit against Perplexity over its Comet browser agent, which serves as an automated shopping assistant on Amazon. The case continued into 2026.
- Amazon’s Allegations:
- Amazon claims Perplexity covertly accessed customer accounts.
- Failed to disclose its automated nature
- Had its agents impersonate real users to circumvent restrictions
- Amazon says this is computer fraud and harms user experience.
- Perplexity’s position: Perplexity calls Amazon’s action bullying and a threat to user choice. The company argues that its agent works on behalf of users and stores credentials locally.
- Context: The lawsuit is an important test for Agentic AI in e-commerce as it puts automated, independent agents against platform-controlled, ad-driven shopping experiences.
While Public City has expanded its cloud setup with Microsoft to reduce its reliance on a single provider, it still faces legal obstacles from Amazon, which is also developing its own AI shopping agents, such as Rufus.
Amazon (AMZN.O) sued Perplexity AI on Tuesday over the startup’s automated shopping feature, which places orders for users. Amazon claims Perplexity secretly accessed customer accounts and made automated activity appear to be carried out by people.
The dispute brings attention to the current debate about how to regulate AI agents as they become more common and handle more online tasks for users.
Perplexity, which has grown rapidly amid the rise of AI assistants, has challenged Amazon’s claims and accused the company of using its power to limit competition.
The startup did not respond right away to Reuters’ request for comment about Amazon’s lawsuit, which was filed in the U.S. District Court for the Northern District of California.
Amazon Wants Perplexity To End Misconduct
In the lawsuit, Amazon said Perplexity secretly accessed private Amazon customer accounts using its Comet browser and AI agent, and made automated actions appear as if people had done them.
Amazon also said Perplexity’s system put customer data at risk, and that the startup ignored several requests to stop.
Rather than being transparent, Perplexity has purposely configured its Comet AI software not identify the Comet AI agents’ activities in the Amazon store, it said.
Perplexity’s misconduct must end. Amazon added: Perplexity is not allowed to go where it has been explicitly told it cannot; the perplexity that perplexity’s trespass involves code rather than a lockpick makes it no less unlawful.
Earlier, Perplexity said Amazon had threatened legal action and demanded that it block the Comet AI agent from shopping on Amazon. Perplexity called this a bigger threat to user choice and the future of AI assistants.
Bullying is when large corporations use legal threats and intimidation to block innovation and make life worse for people, the company wrote in a blog post.
In its complaint, Amazon said Perplexity’s Comet AI agent worsened the shopping experience for customers and interfered with Amazon’s efforts to provide a personalized shopping experience.
Amazon said earlier that third-party apps that make purchases for users should be transparent about their actions and respect businesses’ decisions on whether to participate.
Credentials Stored Locally Says Perplexity
Perplexity is one of many AI startups trying to redesign the web browser with AI so it can handle more everyday online tasks, like writing emails or making purchases.
Amazon is also working on similar tools, such as “Buy for Me,” which lets users shop across brands in its app, and Rufus, an AI assistant that suggests items and manages shopping carts.
The AI agent in Perplexity’s Comet browser helps users make purchases and compare products. The company says user credentials are stored only on users’ devices, not on its servers.
Earlier shopping means more transactions and happier customers. It added, “But Amazon doesn’t care; they are more interested in serving your ads.”
The start-up said users should be able to choose their own AI assistants and argued that Amazon’s actions are meant to protect its ad-based business model.
