Nvidia is in discussions to invest in Perplexity, the AI search startup, at a valuation exceeding $30 billion, according to reporting by The Information.
The investment terms remain undisclosed, including the size of Nvidia's commitment. Perplexity has raised roughly $500 million across prior funding rounds, including a Series B that valued the company at $3 billion in 2024.
Perplexity, founded in 2023 by Aravind Srinivas, operates an AI-powered search engine that uses large language models to generate answers from web sources in conversational format. The company has grown rapidly, reaching 500 million monthly queries by mid-2024 and expanding to serve users across multiple regions. Nvidia has made strategic investments in AI companies in recent years, including funding for xAI and other startups.
The potential investment comes as AI search has become a contested category. OpenAI launched SearchGPT earlier this year, and Google has integrated AI summaries into its core search product. Perplexity has differentiated itself through a citation-heavy format and API access for third-party developers.
Perplexity's reliance on Nvidia GPUs to run its models creates a potential customer relationship for the chipmaker. A $30 billion valuation would represent a 10-fold increase from Perplexity's $3 billion Series B valuation in 2024. Venture funding for consumer-facing AI applications has remained selective despite investor appetite for differentiated companies in the space.
The talks do not guarantee a completed investment; deal terms and closing conditions remain under negotiation.
The document to watch is any amended and restated certificate of incorporation filed by Perplexity with Delaware, which would confirm the round's terms and final valuation once the investment closes.
