They didn't buy Perplexity and it indeed rather seems like Perplexity may have damaged the deal by blurting.

Whether things are different now I don't know, but Prism would potentially be a good acquisition.

This is not the first Bonsai model from Prism using this technology, and they've also applied this technology to an image model.

The model aspect isn't that significant (even in this news), because it is Qwen, under the hood. The encoding efficiency is.

Prism's technology might be valuable, and their team could well be.

And they very evidently do care a lot about efficient on-device AI; they just don't care about developing frontier cloud models.