Nvidia Considers $30 Billion Investment in AI Search Challenger Perplexity

Nvidia is reportedly in talks to invest in Perplexity at a valuation above $30 billion, up from roughly $20 billion in September 2025. Perplexity CEO Aravind Srinivas has discussed a 2028 IPO.

The company's annualized revenue has climbed above $750 million from less than $250 million at the start of 2026, helped by demand for the Perplexity Computer AI agent. Investors would be paying roughly 40 times annualized revenue, and a separate $750 million Microsoft Azure agreement shows how quickly that growth consumes compute.

Nvidia's CEO Jensen Huang has already named Perplexity as a customer, grouping it with other companies that buy or rent Nvidia silicon. Huang is candid about why the setup works: 'Compute is revenue.'