Nvidia in talks to invest in Perplexity AI at valuation above $30 billion: Report

Nvidia is reportedly in talks to make another investment in Perplexity AI, potentially pushing the AI search startup's valuation above $30 billion. The discussions come as Perplexity continues to expand rapidly in AI search and agentic services. The proposed deal could value Perplexity at more than $30 billion, according to The Information. That would be more than 50% higher than the $20 billion valuation it secured during its last major funding round. There is no guarantee that the deal will be finalised, and the size of Nvidia's potential investment remains unknown. Neither company has commented on the report. Perplexity's rapid revenue growth appears to be a major factor behind its rising valuation. The company's annualised revenue run rate has climbed to around $750 million from less than $250 million at the beginning of the year, The Information reported. One of the key contributors to this growth is Perplexity Computer, an AI agent that allows users to perform tasks across applications and files. The service can conduct research, create and edit documents, update spreadsheets and manage complex workflows. If the reported revenue figures are accurate, Perplexity has achieved unusually rapid growth in an increasingly competitive AI market. NVIDIA wants a stronger position in AI search NVIDIA has already invested in Perplexity and maintains a close relationship with the startup. Amazon founder Jeff Bezos and SoftBank are among the other major investors backing the company. The potential investment may be about more than financial returns for Nvidia. AI search and agentic systems require significant computing power, particularly for inference. By supporting companies that use its technology, Nvidia could help drive demand for its AI hardware and strengthen its position as competitors look for alternatives to its chips. That makes the potential investment in Perplexity strategically important. As demand for AI inference grows, competitors such as AMD and Cerebras are gaining ground, offering AI companies more hardware options. Perplexity is also expanding through major partnerships. The company has said its AI search technology will be integrated with Samsung's Bixby assistant, potentially bringing its services to hundreds of millions of devices worldwide. The startup is reportedly preparing for an initial public offering in the coming years, with a potential listing around 2028. Such a move could also give Nvidia an eventual exit opportunity. NVIDIA has invested in several major AI companies, including OpenAI, Anthropic and xAI. The company's role in the AI industry is increasingly extending beyond supplying chips. NVIDIA is also investing in companies that build and use AI systems powered by its hardware. A potential investment in Perplexity could therefore give Nvidia both financial exposure to the future of AI and a stronger position in the growing markets for AI search and autonomous agents. Pragya is a Technology reporter with over four years of experience in digital media and content writing. She holds a Master’s degree in Journalism and has covered a wide range of stories spanning space, smartphones, gadgets, artificial intelligence, emerging technologies and the ways technology is transforming everyday life. She focuses on breaking down complex technology and science developments into clear, engaging, and reader-friendly stories, with a keen interest in emerging trends and their real-world impact. Before joining her current newsroom, Pragya worked with News9Live, where she covered the technology beat extensively, reporting on smartphones, consumer technology, AI, space and science, while also contributing to video and visual content. Her experience includes breaking news, explainers, SEO-driven stories, product coverage, interviews, unboxing videos and live event reporting. She has also covered major technology and AI events, giving her experience in both newsroom and on-ground reporting. Beyond journalism, Pragya is an avid gamer and a passionate reader of fiction. She enjoys exploring immersive worlds through games and books, with a particular interest in stories that offer new perspectives, ideas, and experiences. Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. MoreOops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.