Nvidia in talks to invest in AI startup Perplexity at over $30 billion valuation

Artificial intelligence startup Perplexity is in discussions for a significant investment from tech giant Nvidia, which could value the company at more than $30 billion. The Information reported the potential equity funding round, citing sources familiar with the discussions.

This proposed valuation marks a substantial increase of over 50% from Perplexity's previous valuation of $20 billion, which was finalized in September of the previous year. The AI startup has experienced rapid growth, with its annual revenue climbing to over $750 million. This figure is a significant jump from under $250 million at the beginning of the year, according to the report.

A portion of Perplexity's revenue growth is attributed to Perplexity Computer, its cloud-based AI agent designed to automate tasks for professionals. Earlier this year, the company also secured a $750 million agreement with Microsoft to utilize its Azure cloud services. Perplexity's existing investors include notable figures and firms such as Amazon founder Jeff Bezos, SoftBank Group, and Nvidia itself.

Perplexity's CEO, Aravind Srinivas, previously stated in June that the company intends to pursue an initial public offering (IPO) in 2028, irrespective of the market reception to IPOs from AI rivals like Anthropic and OpenAI.