Nvidia is weighing a multibillion-dollar investment in AI search startup Perplexity at a $30 billion valuation, more than double its previous mark. The deal would deepen ties between the chipmaker and a company whose CEO calls his go-to chatbot.
Alpha Score of 68 reflects moderate overall profile with moderate momentum, weak value, strong quality, moderate sentiment.
Nvidia is weighing participation in a new funding round for AI search startup Perplexity, The Information reported Sunday. The deal would value Perplexity at more than $30 billion, more than double its valuation from a year ago, and run into the billions of dollars.
Perplexity's annualized revenue has climbed to over $750 million from under $250 million at the start of the year, the report said. The jump is tied partly to Perplexity Computer, an AI agent professionals use to automate desktop tasks. Nvidia and Perplexity have been deepening their relationship. Nvidia CEO Jensen Huang has said in interviews that Perplexity is his go-to chatbot.
Nvidia had previously considered a multibillion-dollar licensing deal with Perplexity as part of a broader push to develop its own AI models and software, according to the report.
Over the last several years, Nvidia has acted as a kind of central bank for AI startups, funneling billions of dollars to companies that in turn rent or buy its chips. The chipmaker has also started pursuing licensing and hiring deals. Last week, Nvidia agreed to pay $6 billion to license AI model development software from Poolside, while investing $1 billion in the firm at a $12 billion pre-money valuation. Late last year, it acquired technology from AI inference company Groq and hired several members of that team, though Groq said it would keep operating as an independent business.
Nvidia shares closed at $209.85 on Friday, down 2.27% on the session. The stock carries an Alpha Score of 68, a Moderate rating from AlphaScala's proprietary model. The score reflects the tension between the company's dominant position in AI hardware and the growing capital demands of its investment strategy.
What is less clear is how the Perplexity round would fit into Nvidia's existing balance sheet. The company has spent tens of billions of dollars on chip, networking, and data-center investments. Adding a multibillion-dollar bet on a search startup at a 30x-plus revenue multiple would mark a departure from its usual pattern of backing companies that are direct chip customers.
For Perplexity, the Nvidia tie-up would provide more than cash. Access to Nvidia's engineering resources and chip allocation could give it a structural edge over rivals racing to build AI search products. The startup's revenue growth – tripling in less than a year – shows the market is already voting on that bet.
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