Nvidia is in talks to invest in Perplexity's latest funding round, which could value the AI startup at over $30 billion, per a report by The Information. This represents a more than 50% increase from Perplexity's $20 billion valuation last September.
TL;DR
- Nvidia may invest in Perplexity's $30B+ funding round, a 50% valuation jump from $20B in 2025.
- Perplexity's annualized revenue surged to $750M, up from under $250M earlier this year.
- The startup plans to go public in 2028, backed by Nvidia, Amazon's Jeff Bezos, and SoftBank.
What happened
Nvidia is reportedly in discussions to invest in Perplexity as part of an equity funding round that could value the AI startup at over $30 billion, according to The Information. This potential investment would mark a significant increase from Perplexity's previous valuation of $20 billion, finalized in September 2025.
Perplexity's annualized revenue has grown substantially, reaching over $750 million, up from under $250 million at the start of the year. This growth is partly driven by Perplexity Computer, a cloud-based AI agent used by professionals to automate computer tasks.
Earlier this year, Perplexity signed a $750 million agreement with Microsoft to use its Azure cloud service, as reported by Bloomberg News. In June, Perplexity CEO Aravind Srinivas told CNBC that the company plans to go public in 2028, regardless of the market reception of AI rivals Anthropic and OpenAI.
Why it matters
This potential investment highlights Nvidia's strategic interest in expanding its footprint in the AI sector, particularly in companies that develop AI agents and automation tools. For Perplexity, a $30 billion valuation would solidify its position as a major player in the AI industry, attracting further investment and partnerships.
The significant revenue growth and strategic partnerships, such as the agreement with Microsoft, underscore Perplexity's strong market position and potential for future growth. The planned IPO in 2028 indicates confidence in the company's long-term prospects, despite the competitive landscape.
For developers and startups, this news underscores the growing importance of AI agents and automation tools in the market. Investors may see this as a signal to explore similar opportunities in the AI sector, particularly in companies focused on cloud-based solutions and professional automation.
Key facts
- Nvidia is in talks to invest in Perplexity's funding round, potentially valuing the startup at over $30 billion (The Information).
- Perplexity's previous valuation was $20 billion, finalized in September 2025 (The Information).
- Perplexity's annualized revenue has grown to over $750 million, up from under $250 million earlier this year (The Information).
- Perplexity Computer, a cloud-based AI agent, has contributed to the company's revenue growth (The Information).
- Perplexity signed a $750 million agreement with Microsoft to use its Azure cloud service (Bloomberg News).
- Perplexity plans to go public in 2028, according to CEO Aravind Srinivas (CNBC).
- Existing backers of Perplexity include Amazon founder Jeff Bezos, SoftBank Group, and Nvidia (The Information).
Context
Perplexity is part of a growing wave of AI startups focusing on AI agents and automation tools, which are increasingly in demand across various industries. The company's rapid valuation increase and revenue growth reflect the broader trend of investment and innovation in the AI sector.
Nvidia's potential investment in Perplexity aligns with its strategy to expand its presence in the AI market, particularly in areas related to AI agents and cloud-based solutions. This move could further solidify Nvidia's position as a key player in the AI ecosystem.
The planned IPO in 2028 indicates Perplexity's confidence in its long-term prospects, despite the competitive landscape dominated by established players like Anthropic and OpenAI. This could set a precedent for other AI startups considering going public in the near future.
