Nvidia Is Reportedly in Talks to Value Perplexity at Over $30 Billion — The Deal Still Isn't Signed

A Chipmaker Eyeing an AI Search Startup

Nvidia, the company that sells the GPUs powering nearly every major AI lab on Earth, is reportedly in discussions to invest in Perplexity AI as part of a new funding round that would value the AI-powered search and "answer engine" startup at more than $30 billion. The report originated with The Information and was subsequently picked up and corroborated by Reuters, Bloomberg-adjacent outlets, and business wires including Benzinga and Investing.com, all citing people familiar with the discussions rather than an official announcement from either company.

That distinction matters. As of this writing, neither Nvidia nor Perplexity has confirmed the talks publicly, no term sheet has been reported as signed, and multiple outlets covering the story explicitly note that the round could still fall through or be repriced before anything closes. Readers should treat the $30 billion figure as a reported negotiating point, not a done deal.

Why Perplexity, and Why Now

Perplexity has spent the past two years positioning itself as a challenger to Google's search dominance, built around an AI model that answers questions directly with cited sources rather than returning a list of links. According to reporting on the talks, the startup's annualized revenue has reportedly climbed past $750 million, up from under $250 million at the start of the year — growth that sources attribute largely to "Perplexity Comet," the company's AI browser product, rather than its original search engine alone.

If accurate, that revenue trajectory would help explain why investors are reportedly willing to entertain a valuation roughly 40 times current annualized revenue — a multiple that at least one analysis flagged as aggressive even by current AI-market standards, where rich valuations have become the norm rather than the exception.

This would not be Perplexity's first big round. Reporting places its prior valuation at around $20 billion as of a September 2025 raise, with some accounts suggesting a subsequent round near $23 billion in January 2026. If the reported $30 billion-plus figure holds, it would mark another sharp step up in roughly a year — not unusual for AI startups in 2026, but notable given how recently the last markup happened.

What Nvidia Would Get Out of It

Nvidia's interest is reportedly not limited to a straightforward equity check. The Information separately reported that the chipmaker has also discussed a technology licensing arrangement with Perplexity, suggesting Nvidia may be looking for more than a passive financial stake — potentially a deeper commercial relationship involving its AI infrastructure or software stack.

This would fit a pattern analysts have been watching for over a year: Nvidia increasingly investing directly in companies that are, in turn, large buyers of its chips and infrastructure — a dynamic some critics have likened to vendor financing, where the chip supplier helps fund the very customers that generate its revenue. Nvidia has made similar moves elsewhere in the AI ecosystem, and this reported talk with Perplexity would be consistent with that broader strategy rather than a one-off.

The Skepticism Worth Noting

Several outlets covering the story were careful to flag the gaps in what's actually verifiable. No one has published confirmation of Perplexity's exact current revenue figures outside of what sources told reporters. The precise size of any Nvidia investment — whether it would be a few hundred million dollars or a multi-billion-dollar stake — has not been reported with any specificity. And it's worth remembering that "in talks" stories about AI mega-rounds have, in prior cycles, sometimes changed materially in valuation or collapsed entirely between the leak and the close.

Perplexity has also faced its own controversies this year, including accusations from publishers and content platforms over how its AI products use their material — a backdrop that doesn't necessarily affect fundraising talks but is part of the wider scrutiny the company has been under even as its valuation climbs.

The Broader Picture

Whether or not this specific round closes at $30 billion, the reported talks are a useful snapshot of where AI investment currently concentrates: compute providers like Nvidia increasingly entangled, financially, with the AI application layer built on top of their hardware. For a region like the Gulf — where sovereign-linked vehicles such as Abu Dhabi's MGX have poured tens of billions into AI infrastructure and major AI labs over the past two years — deals like this one are also a signal of how AI valuations keep resetting upward, shaping the price of entry for anyone looking to invest in the sector going forward.

For now, the honest summary is this: Nvidia and Perplexity are reportedly talking. The number being discussed is big. Nothing is signed. We'll update if either company confirms a deal.