Nvidia could back Perplexity at a valuation of over $30B

Nvidia is considering an investment in Perplexity that would boost the AI startup's valuation to more than $30 billion, WebNovare reports, citing unnamed sources. The chip giant has been acting as something of a "central bank" to various AI startups, but its relationship with Perplexity is an especially deep one: At one point, Nvidia even mulled spending billions to license the startup's tech and hire some of its staffers. Perplexity, meanwhile, has had a banner year, more than tripling its annualized revenue to over $750 million in recent months.

Adam Hanafi A
Nvidia could back Perplexity at a valuation of over $30B

Nvidia is reportedly considering a new investment in Perplexity that could value the artificial intelligence startup at more than $30 billion. According to WebNovare, which cited unnamed sources, the potential deal would further strengthen the relationship between one of the world's most valuable chip companies and one of the fastest-growing players in the AI industry.

The possible investment reflects Nvidia's increasingly influential role across the artificial intelligence ecosystem. Beyond supplying the processors that power many of the world's leading AI models, the company has also invested in a growing number of startups, helping provide capital to companies that could become major customers of its computing hardware.

That strategy has led some industry observers to describe Nvidia as acting almost like a "central bank" for the AI sector. The company has deployed capital across numerous startups while simultaneously benefiting from the industry's rapidly increasing demand for advanced graphics processors and AI infrastructure.

Nvidia's relationship with Perplexity appears to be particularly significant. At one point, the chipmaker reportedly considered a much larger arrangement that could have involved spending billions of dollars to license Perplexity's technology and recruit members of its team.

Although those discussions did not result in the broader transaction being completed, they illustrate the strategic value Nvidia may see in Perplexity's technology. The startup has positioned itself as a major challenger in the rapidly evolving AI search market, using artificial intelligence to provide direct answers and summaries in response to user questions.

Perplexity has experienced extraordinary growth over the past year. The company has reportedly more than tripled its annualized revenue in recent months, pushing the figure above $750 million as demand for AI-powered search and information tools continues to increase.

The startup's rapid expansion has attracted attention from investors competing to secure positions in the next generation of AI companies. A valuation above $30 billion would place Perplexity among the most valuable privately held AI businesses in the world and represent another major increase from its previous fundraising rounds.

The potential investment could also deepen the relationship between Nvidia and a company that relies heavily on advanced computing infrastructure. As Perplexity expands its user base and develops more sophisticated AI products, its demand for powerful chips and data-center capacity could continue to grow.

Nvidia's investment strategy has drawn increasing attention because of the company's unique position within the AI economy. By supplying the hardware, investing in AI startups, and potentially forming deeper commercial partnerships with them, Nvidia is building influence across multiple layers of the rapidly expanding industry.

For Perplexity, an investment from Nvidia would provide more than additional capital. It could strengthen the startup's access to AI infrastructure and further validate its position in an increasingly competitive market dominated by major technology companies. If the deal moves forward, the investment could mark another major milestone in Perplexity's rapid rise and push its valuation beyond the $30 billion mark.

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