Nvidia in Talks to Invest in Perplexity at $30 Billion-Plus Valuation
Nvidia is in discussions to invest in the AI search startup Perplexity as part of a new equity funding round that would value the company at more than $30 billion, according to a report by The Information published on Sunday, citing people with knowledge of the talks.
The proposed round would mark a gain of more than 50 percent over Perplexity's previous valuation of $20 billion, which the company finalized in September 2025, the report said. If completed, the deal would add at least $10 billion to the company's worth in roughly a year, as noted by several outlets covering the story.
Neither company has publicly confirmed the discussions. Perplexity declined to comment on The Information's report, while Nvidia did not immediately respond to a request for comment from Reuters, according to the International Business Times. The size of Nvidia's potential investment has not been disclosed, and there is no guarantee the talks will result in a deal.
Revenue Growth and Product Expansion
The investment talks come as Perplexity's annualized revenue has climbed above $750 million, up from less than $250 million at the start of 2026, according to The Information. That means the startup has roughly tripled its revenue run rate in less than a year, a figure that several outlets noted as a key driver of investor interest.
Part of this growth has been attributed to Perplexity Computer, a cloud-based AI agent designed to help professionals automate computer-based tasks, as reported by The Information and echoed in other coverage. The company has also expanded beyond its core AI search product into areas such as the Comet AI browser and an AI agent layer called Comet Assistant, according to the Free Press Journal, though that report did not specify the product's revenue contribution.
Perplexity, founded in 2022 by former Google and OpenAI engineers, has emerged as a prominent challenger to traditional search with its AI-powered "answer engine" that provides direct responses with citations. The company's valuation has climbed rapidly since 2023, when it was valued at just over $121 million, reflecting broader investor enthusiasm for AI search and answer engines, as noted by the Free Press Journal.
Previous Financing and Investor Backing
Nvidia is already an existing backer of Perplexity, having participated in earlier funding rounds alongside investors including Amazon founder Jeff Bezos, Japan's SoftBank Group, IVP, and New Enterprise Associates, according to multiple reports. The startup has raised more than $1.5 billion to date, as reported by TechStartups.
In addition to the potential Nvidia round, Perplexity has been building its infrastructure relationships. Earlier this year, the company signed a $750 million agreement with Microsoft to use its Azure cloud services, according to a Bloomberg News report cited in several of the articles.
The information about Perplexity's revenue and valuation trajectory comes as the company reportedly plans to go public in 2028, regardless of how the market receives potential listings from Anthropic and OpenAI, CEO Aravind Srinivas told CNBC in an interview in June, as reported by multiple outlets.
Nvidia's Broader AI Investment Strategy
The talks with Perplexity fit into Nvidia's wider pattern of strategic investments across the AI ecosystem, according to the Free Press Journal. The chipmaker has increasingly used investments and partnerships to strengthen ties with companies building AI models, applications, and infrastructure, even as it remains the dominant supplier of processors powering much of the industry's expansion, as the International Business Times noted.
Nvidia had earlier considered alternative ways to work with Perplexity, including a technology licensing arrangement and hiring some of the startup's staff, before the conversation shifted toward a direct equity investment, according to The Information as cited by the Free Press Journal.
The discussions arrive just days before Nvidia is scheduled to report quarterly earnings on Aug. 26, an event that the International Business Times described as a test of investor confidence in the company's continued growth.
The potential investment would deepen an existing relationship that already extends Nvidia's reach across an AI ecosystem heavily dependent on its chips and computing infrastructure. As several reports noted, backing companies like Perplexity helps Nvidia secure early access to emerging AI products and platforms that rely on its hardware.