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Nvidia is in talks to participate in a new equity funding round for AI search startup Perplexity, a multi-billion-dollar raise that would push the company’s valuation past $30 billion—up more than 50% from a year ago. Perplexity’s annualized revenue has surged from under $250 million at the start of this year to over $750 million, driven largely by growth in its AI agent product, Perplexity Computer. Nvidia had previously considered paying billions of dollars to license some of Perplexity’s technology and recruit its talent, but discussions have since shifted toward a traditional equity investment structure. Nvidia has been actively building out its AI startup ecosystem through a combination of technology licensing, talent acquisition, and equity investments.
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Nvidia (NVDA), the leading AI chipmaker, is in discussions with AI search startup Perplexity about participating in its latest equity funding round. According to people familiar with the matter, the round could raise several billion dollars and, if completed, would push Perplexity’s valuation past $30 billion (approximately NT$950 billion)—a jump of more than 50% from its previous funding round a year ago.
The news was first citing two people with knowledge of the negotiations. The report noted that Perplexity has previously raised more than $1.7 billion (approximately NT$54 billion) from investors including Nvidia, venture capital firms New Enterprise Associates and Accel, and SoftBank. Nvidia is already an existing investor in Perplexity
Notably, Perplexity’s annualized revenue has seen explosive growth this year. According to The Information, the company’s annualized revenue has climbed from under $250 million (approximately NT$7.9 billion) at the start of this year to more than $750 million (approximately NT$24 billion). A key driver of this growth has been the launch of its AI agent product, “Perplexity Computer,” which targets the professional market and can autonomously execute computer tasks, serving as a major engine for rapid revenue expansion.
Market analysts suggest that Nvidia’s interest in participating in Perplexity’s funding round through a traditional equity investment reflects a deepening of the commercial relationship between the two companies. Sources cited in the report indicated that Nvidia had previously considered paying billions of dollars to license some of Perplexity’s technology and recruit some of its employees, with the goal of advancing Nvidia’s own AI models and supporting software development. However, it remains unclear why discussions shifted from a technology licensing and talent acquisition model to a more conventional equity investment deal.
Industry observers note that Nvidia’s strategy in the AI startup space has been notably diversified in recent years. Beyond direct investments, the company has adopted a three-pronged approach combining technology licensing, talent acquisition, and equity investment—an unconventional alternative to outright acquisitions. This approach allows Nvidia to quickly secure critical AI model capabilities and core talent while avoiding the antitrust and regulatory scrutiny risks that direct acquisitions could trigger.
The Perplexity funding news comes shortly after reports emerged that Nvidia plans to pay $6 billion (approximately NT$190 billion) for a model usage license from another AI startup, Poolside, with an additional $1 billion (approximately NT$32 billion) equity investment, while absorbing more than 100 Poolside employees. Poolside’s pre-money valuation stands at approximately $12 billion (approximately NT$380 billion), and the company will continue to operate independently after the transaction closes, with all three co-founders remaining in their roles.
Nvidia shares closed down $2.13, or 0.98%, at $214.72 on August 21, marking the lowest closing price since August 4. The stock has now declined for six consecutive trading sessions, trimming its year-to-date gain to 15.13%, underperforming amid a broader market rebound.
Perplexity has rapidly emerged as a rising force in the AI search engine space in recent years and is viewed as a potential challenger to Google’s search business. By integrating large language models with real-time web search capabilities, the company offers a conversational search experience with cited sources, attracting a large base of users and enterprise clients. If the new funding round is successfully completed and the valuation surpasses $30 billion, it would further cement Perplexity’s leading position in the generative AI space and signal that capital markets continue to warm to AI application-layer startups.
However, some observers caution that AI startup valuations have inflated rapidly over the past year, and while some companies have posted impressive revenue growth, they remain far from achieving stable profitability. As the core supplier of AI infrastructure, Nvidia’s investment moves are closely watched by the market. Its increased investment in Perplexity is being interpreted as a signal that Nvidia intends to build tighter ecosystem connections at the AI application layer, reinforcing its strategic position across the entire AI industry chain.
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