Nvidia in Talks to Back Perplexity at $30 Billion-Plus Valuation, AI Startup's Revenue Surges to $750 Million

Nvidia is in talks to invest in AI search startup Perplexity at a valuation exceeding $30 billion, more than 50% higher than its previous financing round a year ago, as annualized revenue surged to over $750 million.

Nvidia is in discussions to invest in Perplexity as part of an equity funding round that would value the AI startup at more than $30 billion, according to a report from The Information. The proposed round would increase Perplexity's valuation by more than 50% from its previous financing in 2025, when it was valued at approximately $20 billion.

"Nvidia is in talks to invest in Perplexity as part of an equity funding round that would value the AI startup at more than $30 billion," the report stated, citing people with knowledge of the discussion.

Revenue Growth and Perplexity Computer

Perplexity's annualized revenue has climbed to more than $750 million from less than $250 million at the start of 2026. Part of this growth has been driven by Perplexity Computer, a cloud-based AI agent used by professionals to automate computer-based tasks.

The company had previously raised over $1.7 billion from investors including Nvidia, New Enterprise Associates, Accel, and SoftBank. Other high-profile backers include Amazon founder Jeff Bezos and Japan's SoftBank Group. Nvidia had earlier considered paying billions to license some of Perplexity's technology and hire staff before shifting to a more traditional equity investment.

IPO Plans and Competition

Perplexity is planning to go public in 2028 regardless of how the market receives the listings of Anthropic and OpenAI, CEO Aravind Srinivas told CNBC in June. The startup earlier this year signed a $750 million agreement with Microsoft to use its Azure cloud service.

The reported talks come as Nvidia accelerates its AI investments across the sector. The chipmaker recently paid $6 billion to license Poolside AI's model software and invested $1 billion, while also making a minority investment in data centre developer Cloverleaf Infrastructure.

Here is the question this investment raises. Nvidia is in talks to back Perplexity at a $30 billion-plus valuation as the AI search startup's revenue surges. When a chipmaker deepens its ties with an AI search company, what does it signal about the convergence of hardware and software in the AI race?

FAQ:

Q: What is Perplexity?
A: Perplexity is an AI-powered search and answer engine startup. It also offers Perplexity Computer, a cloud-based AI agent that professionals use to automate computer-based tasks.

Q: How much is Nvidia reportedly investing in Perplexity?
A: Nvidia is in talks to invest in Perplexity as part of an equity funding round that would value the company at more than $30 billion. The exact investment amount has not been disclosed.

Q: What is Perplexity's current annualized revenue?
A: Perplexity's annualized revenue has risen to more than $750 million, up from less than $250 million at the start of the year.

Q: When does Perplexity plan to go public?
A: Perplexity is planning to go public in 2028, regardless of how the market receives the listings of Anthropic and OpenAI, CEO Aravind Srinivas told CNBC.

Q: What other investments has Nvidia recently made in AI?
A: Nvidia recently paid $6 billion to license Poolside AI's model software with a $1 billion investment, and made a minority investment in data centre developer Cloverleaf Infrastructure.