Nvidia is in discussions to invest equity in Perplexity at a valuation exceeding $30 billion, according to The Information. The deal could close before Nvidia's earnings announcement Wednesday at 5 p.m. ET.
Perplexity's annualized revenue has surged to $750 million, up from less than $250 million at the start of 2026. The AI search company has become one of the fastest-growing applications in the sector, drawing interest from major hardware and investment players.
The potential Nvidia investment signals a strategic shift. Rather than remaining purely a chip supplier, Nvidia appears to be moving upstream into the product layer by backing consumer-facing AI applications. This mirrors broader industry consolidation where hardware makers seek to capture value across the stack.
Separately, SoftBank announced plans for a record ¥1 trillion, or $6.3 billion, retail bond offering in Japan. The company will use proceeds to repay bridge financing connected to its OpenAI investment stake and to fund additional AI deals. The bond sale taps Japanese retail investors to fuel SoftBank's aggressive AI portfolio expansion.
The two moves reflect diverging capital strategies. Nvidia leverages its core business strength and cash position to invest in promising applications, positioning itself as both supplier and stakeholder in AI's winners. SoftBank, meanwhile, relies on public debt markets and retail capital to fund its frontier technology bets.
Nvidia's potential Perplexity stake carries symbolic weight ahead of earnings. Management commentary will signal whether the company now positions itself as a supplier, investor, or hybrid entity. The move could reshape how the market views Nvidia's long-term strategy beyond processor sales.
The timing matters. Perplexity faces competition from larger players like Google and OpenAI, but its revenue growth and user adoption suggest a differentiated approach to search