Nvidia Eyes Major Stake in $30 Billion AI Startup
Nvidia is considering investing in Perplexity, an AI startup valued at over $30 billion. The company's valuation has increased significantly from its prior $20 billion valuation reported last September.
This growth reflects Perplexity's rapid business scaling, with annualized revenue climbing to over $750 million. The company attributes this surge to the increasing demand for its AI search and 'agent' tools that enable tasks on computers.
Nvidia's potential investment aligns with a broader trend: chipmakers and cloud providers often invest in fast-growing AI apps due to their increased computing power requirements. Perplexity's CEO has stated that the company is targeting an initial public offering (IPO) by 2028, which could be funded by this larger round.
The implications of a $30 billion valuation for Perplexity are significant. If it were to go public with such a valuation, it would be compared to listed software and AI peers. This scrutiny may lead to compressed valuations if revenue growth slows down.