Nvidia is currently negotiating an investment in Perplexity at a valuation exceeding $30 billion, a figure more than 50 percent higher than the company’s previous funding round from last year. This valuation reflects Perplexity’s rapid financial growth, with annualised revenue tripling from $250 million to over $750 million. A significant portion of this revenue jump stems from “Perplexity Computer,” an AI agent designed for automated tasks. The increased token consumption required by such agentic AI models drives higher usage and costs. Nvidia had previously explored an acqui-hire strategy to acquire the company’s technology and staff rather than an equity stake. In March, Perplexity joined the Nemotron Coalition, a group promoting open AI models as a counterweight to Chinese development efforts. CEO Aravind Srinivas is considering an initial public offering around 2028, while the firm has raised more than $1.7 billion so far.
This potential deal would solidify Nvidia’s position as one of the AI industry’s largest financial backers. The chipmaker recently struck similar agreements with Poolside, Groq at a $20 billion valuation, and Enfabrica at $900 million. Much of the investment capital provided by Nvidia tends to flow back to the company as revenue when portfolio companies purchase its chips. The arrangement creates a direct commercial link between the hardware provider and the software application. This cycle ensures that companies building advanced AI agents remain dependent on Nvidia’s underlying infrastructure.
* Perplexity revenue tripled to over $750 million annually
* Nvidia previously considered an acqui-hire instead of an investment
* Aravind Srinivas is targeting an IPO around 2028
