Nvidia is in active discussions to pour fresh capital into Perplexity, the AI search company built by former OpenAI and Google researchers, in a deal that would push the startup’s valuation past $30 billion. If finalized, the round would represent one of the most dramatic valuation jumps in the crowded AI answer engine space this year, coming just months after Perplexity closed a round at roughly $23 billion.
The talks, first reported by The Information and later referenced by Reuters, underscore how aggressively chipmakers like Nvidia are moving to lock in strategic footholds across the AI application layer, not just the hardware that powers it. For Nvidia, an investment in Perplexity would deepen a relationship that already stretches back to the startup’s earliest funding rounds.
The timing is notable. Perplexity’s annualized revenue run rate has reportedly surged past 750 million dollars, a sharp climb from the roughly 450 million dollars the company disclosed earlier in 2026. That growth trajectory, paired with Nvidia’s continued appetite for backing companies built on its own chips, has put Perplexity back at the center of investor attention.
Why Nvidia Considered Several Options Before Choosing Equity #
From licensing talks to a direct stake
According to reporting from The Information, Nvidia did not jump straight to an equity investment. The chipmaker reportedly weighed a technology licensing arrangement with Perplexity and even explored hiring some of the startup’s engineers before the conversation shifted toward taking a direct stake in the company. That evolution suggests Nvidia saw more long-term value in owning a piece of Perplexity’s growth than in a narrower technical partnership.
Nvidia is already one of Perplexity’s earliest and most consistent backers. The company first invested in Perplexity in November 2023 and has participated in most of the startup’s subsequent funding rounds since, alongside high-profile investors including Jeff Bezos, SoftBank, Accel, and IVP.
A pattern Nvidia has repeated across the AI ecosystem
This is not an isolated move. Nvidia has built a sprawling portfolio of AI startup investments over the past two years, backing more than 100 companies through both direct deals and its corporate venture arm, NVentures. Nvidia has described the goal of that investing strategy as expanding the broader AI ecosystem by supporting companies it views as “game changers and market makers” in the space. The strategy serves a dual purpose: it strengthens demand for Nvidia’s chips while giving the company early visibility into which AI products and platforms are gaining real commercial traction.
How Much Perplexity’s Valuation Has Climbed #
Perplexity’s rise from a niche AI search tool to a company potentially worth more than 30 billion dollars has happened remarkably fast, even by AI industry standards. The table below traces the company’s valuation history since 2023.
| Timeframe | Reported Valuation | Key Milestone |
|---|---|---|
| April 2023 | About 121 million dollars | Early-stage funding |
| June 2024 | 3 billion dollars | Rapid early growth phase |
| December 2024 | 9 billion dollars | Fourth funding round of the year |
| March to May 2025 | 14 to 18 billion dollars | Accel-led round and extension |
| September 2025 | Approximately 20 billion dollars | Series E round, 200 million dollar raise |
| January 2026 | Approximately 23 billion dollars | Series E-6 round closes |
| Current talks (2026) | More than 30 billion dollars | Nvidia investment discussions |
Revenue growth is driving the new price tag
Perplexity’s climbing valuation lines up with an equally steep revenue curve. The company’s annual recurring revenue reportedly reached roughly 450 million dollars earlier in 2026 before jumping to more than 750 million dollars in more recent figures. That growth has been fueled by Perplexity’s expansion well beyond its original AI search product.
Products beyond search fueling the numbers
Under CEO Aravind Srinivas, the San Francisco based company has broadened its offering into the Comet AI browser and Comet Assistant, an AI agent layer designed to carry out tasks on a user’s behalf rather than simply returning search results. Perplexity has also built out enterprise offerings and a multi-model routing layer that draws on large language models from several providers, positioning itself as infrastructure for AI-driven web interaction rather than just a search alternative.
What This Means for Nvidia and the Wider AI Market #
Strategic stakes, not just hardware sales
Nvidia’s willingness to consider a licensing deal, a hiring push, and now a potential equity stake in the same company shows how flexible chipmakers have become in chasing relationships with fast-growing AI application companies. For Nvidia, owning equity in Perplexity offers upside beyond chip sales if the startup’s valuation continues to climb, while also cementing a customer relationship that reinforces demand for Nvidia hardware.
No public confirmation yet
Neither Nvidia nor Perplexity has publicly confirmed the talks. Terms of any potential investment, including its size and timing, remain unclear, and details could still change before any deal is finalized. Reuters has noted it could not independently verify the reporting on the discussions.
Competitive pressure in AI search remains intense
Perplexity continues to operate in a market where it competes directly with Google’s AI-powered search features and OpenAI’s search capabilities within ChatGPT. Investors appear to be betting that Perplexity’s answer engine model, combined with its expansion into browsing and AI agents, gives it a durable niche even as larger players push deeper into the same territory.
What to Watch Next #
Any confirmation of deal terms, the identity of other participants in the round, and whether Perplexity’s revenue growth holds up will likely shape how this story develops in the coming days. Given Nvidia’s pattern of participating in nearly every major Perplexity funding round since 2023, a completed deal would extend one of the more consequential strategic partnerships in the AI investment landscape.