Nvidia-Backed Perplexity Secures $500M in Funding Round

Nvidia-backed startup Perplexity is in talks for a $500 million funding round. The company, which develops AI software, has received backing from Nvidia's venture arm, Nvidia Ventures. Perplexity's funding round is expected to close by the end of 2023. Nvidia Ventures has invested in several AI startups in the past year, including $50 million in AI chipmaker, Cerebras Systems.

Nvidia-backed startup Perplexity AI is in advanced talks to raise $500 million in a funding round that would value the company at $14 billion, according to reports [1]. The venture capital firm Accel is set to lead this round, with negotiations ongoing to finalize the terms. Perplexity, which develops AI software, has been backed by Nvidia's venture arm, Nvidia Ventures. The funding round is expected to close by the end of 2023, following a series of strategic investments by Nvidia Ventures in AI startups, including $50 million in AI chipmaker, Cerebras Systems [3].

The company, which provides AI search tools similar to OpenAI's ChatGPT and Google's Gemini, has seen rapid growth in the past year, driven by investor enthusiasm for AI chatbots. Reuters reported in March that Perplexity was in talks to raise between $500 million and $1 billion at an $18 billion valuation [1]. The company raised funds at a $9 billion valuation last year [1].

Perplexity's AI search tools have gained attention due to their ability to deliver faster and more detailed responses to user queries. Apple has reportedly expressed interest in integrating AI search providers like Perplexity into its Safari browser, which could significantly increase the startup's user base [2].

Despite the potential for significant growth, Perplexity faces competition from established players like Google and OpenAI. OpenAI rolled out a search product to all users of its chatbot ChatGPT at the end of last year, adding to the competitive landscape [3].

The funding round is a significant milestone for Perplexity, which has tripled its valuation from $1 billion to $3 billion and then again in several months last year [3]. The company's growth is a testament to the increasing demand for AI-driven search solutions and the potential for AI to disrupt traditional search engines.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3RK1IT:0-ai-firm-perplexity-eyes-14-billion-in-valuation-in-fresh-funding-round-wsj-reports/
[2] https://www.benzinga.com/markets/equities/25/05/45277969/ai-is-eating-search-google-rival-perplexity-ceo-arvind-srinivas-says-as-dan-nile-predicts-agents-to-take-future-share-amid-alphabet-apple-stock-fall
[3] https://www.bloomberg.com/news/articles/2025-05-12/ai-search-startup-perplexity-nears-funding-at-14-billion-value