Tech Desk: Chipmaking giant Nvidia is reportedly in advanced discussions to make a significant investment in AI search startup Perplexity, potentially valuing the company at an astounding $30 billion or more. This news underscores the explosive growth and investor confidence in Perplexity, which has seen its annualised revenue run rate (ARR) skyrocket past $750 million.

Perplexity’s valuation trajectory has been nothing short of meteoric. From a mere $121 million in 2023, the AI-powered search and answer engine saw its worth jump to $20 billion by September 2025 and $23 billion in January 2026. This latest potential funding round, with Nvidia at the helm, highlights the intense interest in the company’s innovative approach to information retrieval.

Nvidia, already an existing backer, is strategically deepening its ties with Perplexity. While previous considerations included licensing technology or hiring staff, the focus has shifted to a direct equity investment. This move aligns with Nvidia’s broader strategy of investing in startups that build on its chips, thereby strengthening demand for its hardware and securing early access to cutting-edge AI products like Perplexity’s core search, Comet AI browser, and Comet Assistant.

Such an investment would not only provide a massive capital injection for Perplexity but also cement its position as a formidable player in the evolving AI landscape, further validating the potential of AI-driven search.