Nvidia Considers Backing Perplexity at $30 Billion Valuation

Nvidia is mulling a potential investment in AI startup Perplexity, The Information revealed on Sunday, August 23. The proposed funding round, valued at over $30 billion, would more than double Perplexity's valuation from a year ago, according to unnamed sources cited in the report. Nvidia and Perplexity have reportedly been strengthening their relationship, with the startup's annual revenue soaring to over $750 million from under $250 million at the start of the year, driven in part by Perplexity Computer, an AI agent used by professionals to automate tasks, the report stated.

Nvidia had previously explored a multibillion-dollar licensing agreement with Perplexity as part of its strategy to create its own AI models and software. The company has played the role of "central bank" for AI startups in recent years, providing billions in funding to these firms as they utilize Nvidia's chips either for rent or purchase, as reported.

Furthermore, Nvidia CEO Jensen Huang has publicly endorsed Perplexity as his preferred chatbot. Although Nvidia has allocated tens of billions of dollars to investments and partnerships with chip, networking, and data center-related companies, it has also started engaging in licensing or hiring deals with startups, as reported. For instance, Nvidia recently agreed to pay $6 billion to license AI model development software from Poolside, while investing $1 billion in the company at a $12 billion pre-money valuation.

Earlier this year, Nvidia acquired technology from AI inference company Groq and hired several employees from the company's team, though Groq maintained its independence. A PYMNTS Intelligence report, "From First Prompt to Daily Habit: The Data Behind Rising Gen AI Reliance," published in July, noted a growing reliance on generative AI, with 69% of individuals using AI for learning and self-improvement utilizing it more than when they initially began.

This trend extends to other task areas, such as writing and communication (66%), managing finances and banking (66%), planning travel and activities (63%), and managing health and wellness (63%). For comprehensive AI coverage, subscribe to the daily AI Newsletter.