Nvidia is considering another investment in Perplexity AI.
The deal could value the startup above $30 billion.
Perplexity's revenue has tripled to $750 million in eight months.
What happened
Nvidia is reportedly in talks to invest again in AI search startup Perplexity AI at a valuation above $30 billion. The Information reported the discussions, citing anonymous sources. The investment size is undisclosed and no deal is guaranteed.
Why it matters
This would mark a more than 50% jump from Perplexity's $20 billion valuation from about a year ago. The startup's annualized revenue run rate has grown to $750 million, up from under $250 million at the start of the year, driven partly by its Perplexity Computer AI agent. Nvidia already backs Perplexity and sees this as an insurance policy to keep the search layer aligned with its chips, deterring rivals like AMD and Cerebras.
What to watch
Perplexity's integration with Samsung's Bixby assistant reaches around 800 million devices, and it is believed to be targeting a 2028 IPO. Nvidia also recently arranged over $500 billion in financing for AI infrastructure with six major financial institutions.
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Nvidia's potential investment in Perplexity fits a broader strategy of backing key AI startups while supplying their compute infrastructure. The chipmaker already counts OpenAI, Anthropic, xAI, and others among its major customers and investors, creating a self-reinforcing cycle of demand for its chips. By also investing in the application layer, Nvidia ensures its hardware remains central to AI workloads, including inference for search.
Perplexity's rapid growth, from under $250 million to $750 million in annualized revenue, illustrates the demand for AI agents like Perplexity Computer. Its deal with Microsoft's Azure for $750 million and integration with Samsung's Bixby expand its reach and infrastructure. Nvidia's financing deal of over $500 billion for AI infrastructure also indicates its commitment to enabling customers to deploy its chips.
The reported talks suggest Nvidia is willing to deepen ties despite no guarantee of a deal. A successful investment would strengthen its position against rivals AMD and Cerebras in the AI inference market, potentially securing a future revenue stream. With Perplexity possibly eyeing a 2028 IPO, Nvidia could realize a return, making this a strategic bet on both the company and the broader AI ecosystem.
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