Nvidia in talks to invest in Perplexity at $30 billion-plus valuation

Nvidia is negotiating an investment in Perplexity at a valuation above $30 billion, more than 50 percent higher than the company's last funding round a year ago, The Information reports. Perplexity's annualized revenue has tripled from $250 million to over $750 million, driven in part by "Perplexity Computer," an AI agent for automated tasks. The revenue jump likely ties to the higher token consumption that agentic AI demands.

Nvidia had previously considered an acqui-hire to bring in Perplexity's technology and staff. In March, Perplexity joined Nvidia's Nemotron Coalition, which promotes open AI models as a counterweight to Chinese development efforts. Perplexity has raised more than $1.7 billion so far, and CEO Aravind Srinivas is considering an IPO around 2028, according to CNBC.

The deal would solidify Nvidia's role as one of the AI industry's biggest financial backers. The chipmaker recently struck similar deals with Poolside, Groq ($20 billion), and Enfabrica ($900 million). Much of that investment money tends to flow back to Nvidia as revenue when portfolio companies buy its chips.

AI News Without the Hype – Curated by Humans

Subscribe to THE DECODER for ad-free reading, a weekly AI newsletter, our exclusive "AI Radar" frontier report six times a year, full archive access, and access to our comment section.