Nvidia is in negotiations to invest in Perplexity at a valuation above $30 billion, according to The Information. If completed, the deal would deepen Nvidia's position not only as the dominant chip supplier behind much of the AI boom, but also as one of the sector's most active financial backers.
The talks arrive at a moment when Perplexity is reporting rapid revenue growth. Its annualized revenue has tripled from $250 million to over $750 million, with part of that growth tied to "Perplexity Computer," an AI agent for automated tasks.
A valuation jump driven by growth
The reported valuation above $30 billion would be more than 50 percent higher than Perplexity's last funding round a year ago. That kind of increase points to investor demand for companies that can turn AI usage into meaningful revenue, especially when their products require heavy computing capacity.
Perplexity's rise is closely linked to how people and businesses are using AI systems. The company is associated with AI search and now with agentic AI through "Perplexity Computer," which is designed around automated tasks. The source connects the revenue increase to the higher token consumption that agentic AI demands.
That detail matters because token use is a direct pressure point in modern AI economics. When AI tools do more work, handle more steps, or act more autonomously, they can consume more compute. For companies building those systems, higher usage can support revenue growth, but it can also increase infrastructure needs.
Why Nvidia is interested
Nvidia's potential investment in Perplexity fits a wider pattern. The company has recently struck similar deals with Poolside, Groq ($20 billion), and Enfabrica ($900 million). These deals show how Nvidia is backing AI companies that may also become major customers for its chips.
The financial loop is straightforward. Nvidia invests in AI companies. Those companies need computing hardware to train, run, and expand their AI systems. Much of that investment money tends to flow back to Nvidia as revenue when portfolio companies buy its chips.
This does not mean every investment is only about chip sales. The source also says Nvidia had previously considered an acqui-hire to bring in Perplexity's technology and staff. That suggests Nvidia has viewed Perplexity as strategically relevant beyond a simple funding opportunity.
Perplexity's Nvidia connection has already grown
The current talks are not the first link between the two companies. In March, Perplexity joined Nvidia's Nemotron Coalition. The coalition promotes open AI models as a counterweight to Chinese development efforts.
That relationship gives the investment talks a broader context. Perplexity is not only a fast-growing AI company seeking capital; it is also part of Nvidia's wider ecosystem around AI model development and deployment.
Perplexity has raised more than $1.7 billion so far. CEO Aravind Srinivas is considering an IPO around 2028, according to CNBC. A new investment at a valuation above $30 billion would therefore sit between two important milestones: the company's past fundraising and a possible future public listing.
What the talks signal for the AI market
The reported Nvidia-Perplexity negotiations show how closely AI software, AI agents, and AI hardware are becoming linked. A company like Perplexity can grow revenue through products that require large-scale computation. Nvidia can support that growth with capital while remaining a likely supplier of the hardware needed to power it.
For the broader AI market, the story is less about one funding round and more about the structure of the industry. AI companies that build demanding products need chips. Chipmakers that supply the infrastructure can become investors. The result is a market where strategic capital and infrastructure spending are often tied together.
The source does not say the deal is complete. It says Nvidia is negotiating an investment. But even at the talks stage, the reported valuation above $30 billion shows how strongly investors are valuing companies that combine AI usage, revenue growth, and a role in the expanding agentic AI market.
Perplexity's next phase will likely be watched through that lens: whether its revenue growth continues, how much demand "Perplexity Computer" creates, and whether Nvidia turns these negotiations into another major AI investment.