Nvidia Eyes Perplexity Stake at $30B Valuation

Nvidia is reportedly in discussions to inject significant capital into Perplexity, the AI-powered search engine, as part of a new funding round. Sources suggest the deal could propel Perplexity's valuation beyond the $30 billion mark, representing a substantial increase from its previous valuation of $20 billion achieved in September 2025 following a $200 million raise.

This potential investment signals a deepening strategic alignment between the chip giant and the rapidly advancing AI search startup. Initially, Nvidia had explored a more complex arrangement involving technology licensing and talent acquisition from Perplexity. However, the conversations have evolved towards a more conventional equity investment, underscoring Nvidia's commitment to fostering key players in the generative AI ecosystem.

Perplexity has demonstrated impressive financial traction, with its annualized revenue reportedly surging from approximately $250 million at the start of the year to over $750 million. This growth is partly attributed to the successful launch of its AI agent, Perplexity Computer, which has broadened its utility and user engagement. To date, the company has secured over $1.7 billion in funding from a distinguished list of backers, including early support from Nvidia itself in January 2024 during a $73.6 million round. Other notable investors include Accel, New Enterprise Associates (NEA), SoftBank, and Jeff Bezos through Bezos Expeditions.

The move aligns with Nvidia's broader strategy to bolster its own open-source language model initiatives, particularly its Nemotron line. By investing in and potentially collaborating with companies like Perplexity, Nvidia aims to accelerate the development and deployment of advanced AI models, positioning itself to compete with both established closed-source frontier models from entities like OpenAI and Anthropic, as well as emerging open-source competitors such as China's DeepSeek and Kimi K3. This follows Nvidia's recent $6 billion deal with AI startup Poolside, which also involved technology access and talent integration.

For Perplexity, this latest funding infusion could serve as crucial preparation for a potential initial public offering (IPO). CEO Aravind Srinivas has previously indicated a target IPO timeline around 2028, irrespective of market conditions or the public offerings of rival AI firms like Anthropic and OpenAI. The company's rapid expansion and increasing valuation suggest it is on a trajectory to become a significant independent force in the AI search and information retrieval market.

The AI search market is experiencing a significant shift, with generative AI capabilities transforming user interaction with information. Traditional search engines are facing disruption, and companies like Perplexity are carving out new niches by offering more direct, synthesized answers powered by large language models. This dynamic environment presents both opportunities for innovation and intense competition, making strategic partnerships and substantial funding rounds critical for sustained growth and market leadership.