Nvidia is reportedly in talks to invest in AI search startup Perplexity as part of a new funding round that could value the company at more than $30 billion.
The talks show how quickly Perplexity has grown as demand for AI-powered search and AI agents continues to increase.
According to reports, Nvidia is considering a more traditional investment in Perplexity. The chipmaker had previously explored a deal involving billions of dollars in technology licensing and hiring some of Perplexity’s employees.
It is not yet clear why Nvidia has shifted its focus toward a potential investment.
A new funding round at a valuation above $30 billion would represent a major increase from Perplexity’s previous valuation.
The company was valued at around $520 million in its Series B round in January 2024.
Since then, Perplexity’s valuation has climbed rapidly as investors have increased their bets on AI search.
The company has reportedly raised more than $1.5 billion from investors including Amazon founder Jeff Bezos and SoftBank.
Perplexity’s business has also expanded quickly.
According to the reports, the company’s annualized revenue has grown to more than $750 million, compared with less than $250 million at the beginning of the year.
One source of that growth is Perplexity Computer, a cloud-based AI agent designed to help professionals automate computer-based tasks.
The growth suggests that Perplexity is moving beyond traditional AI search and building a broader AI assistant business.
Nvidia already has a relationship with Perplexity.
The chipmaker invested in the startup’s Series B funding round, which raised approximately $73.6 million at a valuation of around $520 million.
Nvidia has also supported Perplexity through its NVIDIA Inception program, which provides AI startups with access to hardware, software and other resources.
In July, Perplexity also committed to using Nvidia’s new Vera CPUs for its AI agent workloads.
A new investment would therefore deepen an existing relationship between the two companies.
Nvidia’s interest in Perplexity could be about more than simply owning part of a fast-growing startup.
Perplexity is developing AI products that require significant computing power.
Its AI search engine and agent products need advanced processors to handle large numbers of AI queries and workloads.
For Nvidia, supporting companies that create demand for its AI infrastructure can strengthen its position across the AI ecosystem.
Perplexity could also become an important customer and technology partner as its AI services expand.
