Nvidia reportedly eyes another investment in Perplexity AI at a $30B valuation

Nvidia is reportedly considering a new investment in AI search startup Perplexity AI Inc., according to a report by The Information. The chipmaker is said to be in talks with Perplexity about an investment that could raise the startup's valuation above $30 billion. This would be a 50% increase from the $20 billion valuation Perplexity finalized about a year ago.

The exact size of Nvidia's potential investment was not disclosed, but sources say there is no guarantee of a deal being reached. Perplexity has been experiencing rapid growth, with its annualized revenue run rate reaching $750 million, up from under $250 million at the start of the year. This growth is attributed to Perplexity Computer, a cloud-based AI agent designed for professional users.

Nvidia is an existing financial backer of Perplexity, along with Amazon.com Inc. founder Jeff Bezos and SoftBank Group Corp. The company views Perplexity as an important partner and sees its investment as a safeguard for its AI future, ensuring its search layer remains in alignment with its chip ecosystem. Perplexity's strategic importance to Nvidia is further enhanced by its distribution efforts, including integration with Samsung Electronics Co. Ltd.'s Bixby assistant, which reaches around 800 million devices globally.

The AI search firm is also targeting a 2028 initial public offering, giving Nvidia a clear timeline to realize a return on its investment.