Nvidia eyes new stake in Perplexity at $30 billion Valuation

Chipmaker Nvidia is reportedly in talks to make a fresh investment in artificial intelligence startup Perplexity as part of a funding round that could value the company at more than USD 30 billion, according to media reports.The development comes ahead of Nvidia’s fiscal second-quarter earnings announcement scheduled for August 26, with investors closely watching the company’s artificial intelligence investments, partnerships and outlook for the rapidly expanding AI market.
According to the agency reports, Nvidia is discussing an equity investment in Perplexity. Perplexity was valued at around USD 20 billion following a funding round finalised last year. A valuation exceeding USD 30 billion would represent an increase of more than 50 per cent in roughly 12 months, stated media reports.The potential investment would not mark Nvidia’s first involvement with the AI search startup. The chipmaker has invested in Perplexity since 2023, while the startup in July committed to running its AI agent workloads on Nvidia’s Vera CPUs.Nvidia had previously explored other options, including a licensing arrangement with Perplexity or hiring some of its employees, before discussions shifted towards a potential equity investment in the startup.Perplexity has attracted backing from several prominent investors, including Amazon founder Jeff Bezos and Japan’s SoftBank Group.
The startup has also recorded rapid growth in revenue. Its annualised revenue has reportedly climbed to more than USD 750 million from less than USD 250 million at the beginning of the year, representing roughly a threefold increase in about eight months, reported agency.The agency further noted that part of the growth has been driven by Perplexity Computer, a cloud-based AI agent designed to help professionals automate computer-based tasks.The potential investment highlights the growing ties between Nvidia and emerging AI companies as demand for artificial intelligence infrastructure and applications continues to accelerate.Nvidia is scheduled to announce its fiscal second-quarter results on August 26. Analysts have remained broadly optimistic ahead of the earnings report, with investors expected to closely monitor the chipmaker’s AI-related investments, customer demand and future growth outlook.

(Business Correspondent)