Nvidia Considers Backing Perplexity at $30 Billion Valuation

Nvidia Considers Backing Perplexity at $30 Billion Valuation

Nvidia is considering taking part in a new funding round for artificial intelligence startup Perplexity, The Information reported Sunday (Aug. 23).

The new funding would be worth billions of dollars and value Perplexity at more than $30 billion, more than doubling the company’s valuation from a year ago, according to the report, which cited unnamed sources.

Nvidia and Perplexity have been strengthening their ties, the report said.

Perplexity’s annualized revenue has risen to more than $750 million from under $250 million at the start of the year, due partially to Perplexity Computer, an AI agent professionals use to automate computer tasks, according to the report. Nvidia had previously considered a multibillion-dollar licensing deal with Perplexity as part of its plan to develop its own AI models and software.

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Nvidia has acted as a “central bank” of sorts to AI startups in the last several years, giving these companies billions of dollars as they rent or buy Nvidia’s chips, the report said. In addition, Nvidia CEO Jensen Huang has said in interviews that Perplexity is his go-to chatbot.

While Nvidia has spent tens of billions of dollars on investments and collaborations centered around chip, networking and data center-related firms, it has also begun pursuing licensing or hiring deals with startups, per the report.

For example, the company agreed last week to pay $6 billion to license AI model development software from Poolside, while investing $1 billion in the firm at a $12 billion pre-money valuation.

Late last year, Nvidia acquired tech from AI inference company Groq and hired several members of the firm’s team, although Groq said it would keep operating as an independent business.

Meanwhile, the PYMNTS Intelligence report “From First Prompt to Daily Habit: The Data Behind Rising Gen AI Reliance,” published in July, found that the use of generative AI for personal tasks is growing, with 69% of people who use generative AI for learning and self-improvement saying they use it more now than when they first started.

According to the report, the heavier use extends to other task categories, as 66% use it for writing and communication, and 63% use it for managing finances and banking, planning travel and activities, and managing health and wellness.

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