Nvidia is in talks to invest in Perplexity at a valuation exceeding $30 billion, according to The Information. This marks a more than 50% increase from Perplexity's last funding round a year ago. The investment comes amid rapid growth for the AI company, which has seen its annualized revenue triple from $250 million to over $750 million. The growth is attributed to the launch of 'Perplexity Computer,' an AI agent designed for automated tasks, which drives higher token consumption. This increased demand is expected to contribute significantly to the revenue surge. The deal would further solidify Nvidia's position as a major financial backer in the AI industry.
Nvidia previously considered an acqui-hire to bring in Perplexity's technology and staff, but the current talks suggest a more substantial investment. Perplexity has raised over $1.7 billion in total funding and its CEO, Aravind Srinivas, is considering an IPO around 2028, as reported by CNBC. The company joined Nvidia's Nemotron Coalition in March, which focuses on promoting open AI models as a counter to Chinese development efforts. This coalition aligns with Nvidia's broader strategy to expand its influence in the AI sector.
Perplexity's recent growth and strategic moves highlight its increasing importance in the AI landscape. The potential investment from Nvidia could provide significant financial backing and accelerate the company's expansion. Much of the investment money from such deals typically flows back to Nvidia as revenue when portfolio companies purchase its chips. Source: thedecoder
