Nvidia is reportedly discussing an investment in Perplexity as part of an equity funding round that could value the artificial intelligence startup at more than $30 billion, according to The Information. The potential transaction comes as Nvidia increasingly deploys its capital across the AI ecosystem, moving beyond its core semiconductor business to strengthen relationships with companies developing AI models, software and infrastructure. The report has not been independently verified.

Nvidia Considers Another Major AI Investment

According to The Information, the proposed financing round could be worth billions of dollars and would increase Perplexity’s valuation by more than 50% from its previous financing approximately a year ago. The potential investment would add to Nvidia’s existing financial relationship with Perplexity, which has already received funding from the chipmaker in previous rounds.

Perplexity has emerged as one of the more prominent AI-native companies in the rapidly developing search market. Its business has expanded beyond its original AI search engine to products such as Perplexity Computer, an AI agent designed to automate computer tasks. According to people familiar with the company cited by The Information, Perplexity’s annualized revenue has increased to more than $750 million, compared with less than $250 million at the beginning of the year.

Perplexity Fits Nvidia’s Broader AI Strategy

The potential investment would come as Nvidia continues to build a wider network of strategic relationships across artificial intelligence. The company has invested billions of dollars in AI startups and infrastructure businesses, seeking to support an ecosystem that can generate additional demand for Nvidia’s computing platforms while strengthening its influence across the industry.

Nvidia and Perplexity have also expanded their operational relationship. Perplexity joined Nvidia’s Nemotron Coalition in March, a group focused on developing open AI models. The companies have reportedly been working together on hardware and software development, while Perplexity has said it plans to use Nvidia’s Vera central processing units for agentic AI queries.

The relationship illustrates the increasingly interconnected nature of the AI industry. Nvidia supplies critical computing infrastructure, while companies such as Perplexity create applications that consume significant amounts of that computing capacity. An investment can therefore potentially align Nvidia’s financial interests with the continued expansion of AI workloads.

Valuation Raises Questions for Nvidia and Perplexity

A valuation above $30 billion would place significant expectations on Perplexity to maintain rapid revenue growth and eventually demonstrate a sustainable business model. The company has raised more than $1.7 billion from Nvidia and other investors, according to The Information, while its gross profit margin has reportedly remained around 60%.

For Nvidia, the investment would also demonstrate how aggressively the company is using its financial resources to influence the direction of the AI industry. Such investments can provide strategic advantages, but they also expose Nvidia to the valuation and execution risks of private technology companies operating in a highly competitive market.

Investors will now watch whether the discussions result in a completed transaction, the size and terms of any Nvidia investment and how Perplexity’s revenue growth develops. The potential deal also comes as Nvidia considers other arrangements involving AI companies, including technology licensing and strategic investments. If completed, the Perplexity investment would further illustrate Nvidia’s evolution from a semiconductor supplier into a major capital provider within the global AI ecosystem, while placing greater scrutiny on whether these investments can generate strategic and financial returns over time.