Quick Read – Nvidia (NVDA) is reportedly investing in Perplexity at a $30 billion valuation, targeting a 2028 IPO for the fast-growing AI search startup. – Jensen Huang’s investment is strategically circular: Nvidia funds Perplexity, which buys Nvidia compute, deepening a key…
stomer relationship worth billions. – Perplexity’s annualized revenue tripled to $750 million in a year, but the 40x multiple only holds if growth compounds ahead of its 2028 IPO. – Nvidia (NASDAQ:NVDA) is reportedly in talks to invest in Perplexity at a valuation above $30 billion, up from roughly $20 billion in September 2025. Perplexity CEO Aravind Srinivas has discussed a 2028 IPO
Annualized revenue has climbed above $750 million from less than $250 million at the start of 2026, helped by demand for the Perplexity Computer AI agent. Investors would be paying roughly 40 times annualized revenue, and a separate $750 million Microsoft Azure agreement shows how quickly that growth consumes compute. Nvidia closed at $209.66 with a market capitalization of roughly $5.16 trillion.
The question is whether Nvidia is backing a credible AI search challenger or paying a lavish price to feed the ecosystem that buys its chips. The answer is both, and the second reason matters more than Nvidia bulls tend to admit. A Round That Doubles as Demand Creation Jensen Huang has already named Perplexity as a customer.