San Francisco: Chip giant Nvidia is reportedly in discussions to invest in artificial intelligence search startup Perplexity as part of a new equity funding round that could value the company at more than $30 billion, highlighting continued investor enthusiasm for fast-growing AI companies.
The discussions were first reported by The Information, citing people familiar with the matter, and were subsequently reported by Reuters on August 24, 2026. The talks remain ongoing, meaning the size of Nvidia’s potential investment and the final valuation could still change.
Perplexity Valuation Could Jump More Than 50%
A valuation above $30 billion would represent another major increase in Perplexity’s worth.
The AI startup was valued at approximately $20 billion last year, meaning the proposed funding round could increase its valuation by more than 50%.
The rapid rise reflects investor demand for companies developing AI-powered alternatives to traditional search engines and workplace software.
Perplexity has emerged as one of the most prominent independent AI startups, offering an answer-focused search platform that uses artificial intelligence to respond to questions while providing links and citations to information sources.
Nvidia Already Has Ties With Perplexity
Nvidia is not a completely new investor in Perplexity.
The semiconductor company is already among the startup’s backers, alongside prominent investors including Amazon founder Jeff Bezos and Japan’s SoftBank Group.
A fresh Nvidia investment would deepen the relationship between one of the world’s most important AI-chip suppliers and a company trying to build a major consumer and enterprise AI platform.
Nvidia has increasingly invested across the broader artificial intelligence ecosystem as demand for its graphics processors continues to surge.
Perplexity Revenue Growing Rapidly
The reported investment discussions come as Perplexity records strong revenue growth.
According to Reuters, the startup’s annualised revenue has surpassed $750 million, compared with less than $250 million at the beginning of 2026.
That represents a significant increase in a relatively short period and is one of the factors likely supporting the company’s rising valuation.
A major contributor to the growth has reportedly been Perplexity Computer, the company’s cloud-based AI product designed to automate professional tasks.
The broader shift toward AI agents and tools capable of carrying out complex workplace activities has become one of the most competitive areas of the technology industry.
Perplexity Expands Beyond AI Search
Perplexity initially gained attention as an AI-powered search engine competing for users traditionally served by platforms such as Google.
However, the company has increasingly expanded beyond search.
Its products now target professional users and organisations seeking AI systems capable of researching information, generating responses and automating work-related tasks.
This strategy places Perplexity in an increasingly competitive market that includes major technology companies and well-funded AI startups.
Competition is intensifying as companies race to develop AI systems that can perform tasks on behalf of users rather than simply answer questions.
$750 Million Microsoft Azure Deal
Perplexity has also entered into a major cloud-computing agreement with Microsoft.
The company has secured a deal valued at approximately $750 million to use Microsoft’s Azure cloud services, according to Reuters.
AI companies require enormous amounts of computing capacity to train models and operate their services, making access to cloud infrastructure increasingly important.
The Microsoft agreement provides Perplexity with additional computing resources as it expands its products and user base.
It also demonstrates how leading AI startups often maintain commercial relationships with multiple major technology companies even while competing with some of their products.
Perplexity Reportedly Planning IPO in 2028
Perplexity, led by Indian-origin CEO and co-founder Aravind Srinivas, is also reportedly preparing for a potential public listing.
According to Reuters, the company intends to pursue an initial public offering in 2028, regardless of how IPO plans at other major AI companies develop.
An eventual IPO would give public-market investors an opportunity to invest directly in one of the fastest-growing companies in generative AI.
However, a potential listing remains years away, and market conditions, company growth and competition could all affect those plans.
Nvidia Strengthens Its Position Across AI Industry
A potential investment in Perplexity would also fit Nvidia’s broader strategy of expanding its presence throughout the AI ecosystem.
Nvidia dominates the market for high-performance chips used to train and operate many advanced artificial intelligence models.
By investing in AI startups, the company can potentially benefit from growth in businesses that are themselves major consumers of computing infrastructure.
That gives Nvidia exposure not only to demand for AI hardware but also to companies building applications and services on top of that infrastructure.
Deal Has Not Yet Been Finalised
Despite the reported discussions, investors should note that no investment agreement has been officially announced.
Nvidia did not immediately comment on the report, while Perplexity declined to comment, according to Reuters.
The final size of the funding round, Nvidia’s contribution and Perplexity’s eventual valuation therefore remain uncertain.
Funding negotiations involving fast-growing private technology companies can change significantly before agreements are completed.
AI Investment Boom Continues
The reported $30 billion-plus valuation is another sign of the enormous amounts of capital continuing to flow into artificial intelligence.
Investors are increasingly competing for exposure to companies that could become major platforms in AI search, autonomous agents, cloud services and workplace automation.
For Perplexity, the proposed round would represent another significant milestone in its rapid expansion from an AI search startup into a broader technology company.
For Nvidia, an additional investment would strengthen its ties with another high-growth AI platform at a time when the chipmaker remains central to the global artificial intelligence boom.
If the deal is completed at a valuation above $30 billion, Perplexity would reinforce its position among the world’s most valuable privately held artificial intelligence startups.
Source – Reuters / The Information
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