Nvidia is in discussions to invest in Perplexity AI at a valuation exceeding $30 billion, according to The Information. This valuation is driven by Perplexity's annualized revenue run rate, which has reached $750 million.
TL;DR
- Nvidia is considering an investment in Perplexity AI at a valuation of over $30 billion.
- Perplexity's annualized revenue run rate has hit $750 million, up from under $250 million earlier this year.
- The valuation implies a significant bet on the future growth of search-and-agent AI products.
What happened
Nvidia is in talks to invest in Perplexity AI, potentially valuing the company at over $30 billion, according to a report from The Information. This valuation represents a significant increase from Perplexity's roughly $20 billion valuation a year ago and about $23 billion in its Series E round that closed in January 2026. Neither company has publicly commented on the discussions.
Perplexity's annualized revenue run rate has crossed $750 million, a tripling from under $250 million at the start of 2026. This growth is partly driven by Perplexity Computer, a cloud-based AI agent launched in April that automates tasks like form-filling and travel booking.
Why it matters
A $30 billion valuation for Perplexity, based on a $750 million revenue run rate, implies a 40x multiple. This is significantly higher than the single-digit to low-teens multiples of revenue seen in established software companies like Snowflake and Datadog, which have real profit margins. Perplexity is not yet profitable, so this valuation is a bet on the future value of search-and-agent AI products.
Nvidia's potential investment in Perplexity aligns with its strategy of backing companies that will likely use its GPUs. This pattern has been seen in Nvidia's deals with Groq, Enfabrica, and Poolside, where it combines licensing and hiring key personnel. Critics argue that this strategy could create a circular financing dynamic, but Nvidia denies this.
Key facts
- Nvidia is in talks to invest in Perplexity AI at a valuation of over $30 billion.
- Perplexity's annualized revenue run rate has reached $750 million, up from under $250 million earlier this year.
- Perplexity Computer, launched in April, has contributed significantly to the company's revenue growth.
- Perplexity signed a three-year, $750 million commitment with Microsoft in January to run frontier models through Azure Foundry.
- The $30 billion valuation implies a 40x multiple on Perplexity's revenue run rate.
- Nvidia has previously invested in Perplexity, alongside investors like Jeff Bezos, SoftBank, Accel, and IVP.
- Nvidia has made similar investments in Groq, Enfabrica, and Poolside, combining licensing and hiring key personnel.
- OpenAI has recently reduced its infrastructure spending target from $1.4 trillion to $600 billion through 2030.
Context
Perplexity AI is a search startup that has seen rapid growth in its revenue run rate, driven by products like Perplexity Computer. The company's potential $30 billion valuation reflects the high expectations for the future of search-and-agent AI products.
Nvidia's interest in Perplexity aligns with its broader strategy of investing in companies that will use its GPUs. This strategy has been seen in Nvidia's deals with other AI startups, where it combines licensing and hiring key personnel.
The AI industry is currently experiencing significant growth, with companies like OpenAI and Perplexity attracting large investments. However, the high valuations and revenue multiples seen in the industry also raise questions about the sustainability of this growth and the potential for a bubble.
