SoftBank to invest $10-20M in Perplexity AI at $3B valuation
SoftBank Group's Vision Fund 2 is preparing to invest in US-based artificial intelligence startup, Perplexity AI. The investment, which ranges between $10 million and $20 million, will value the firm at a staggering $3 billion. This move is part of a larger $250 million funding round that triples Perplexity's valuation, placing it among the most highly valued companies in the industry.
SoftBank founder shares vision for AI future
Masayoshi Son, the founder of SoftBank, recently outlined his ambitious vision for the future of artificial intelligence at an annual shareholders meeting. Son is committed to realizing "artificial super intelligence," envisioning AI that is thousands of times smarter than any human. He stated, "We've done many things, but all that's been a warmup for my dream to realize ASI. This is what I was born to do."
Perplexity AI's deal with SoftBank yet to be finalized
The investment deal between SoftBank and Perplexity AI is not yet finalized, and the terms could still change. Both companies have not disclosed anything in the public domain. Earlier this year, Perplexity announced a partnership with SoftBank offering Japanese wireless customers a free one-year subscription to its service, further strengthening its ties with one of the region's biggest markets.
Perplexity AI's unique approach and controversy
Perplexity AI sets itself apart from other AI chatbots by providing more real-time information. The startup refers to itself as an "answer engine" because it provides results in text format instead of links. However, the company has faced controversy over a product that summarizes news stories, raising questions about whether it adequately credits original news outlets.
SoftBank's increased activity in AI services
Following this investment, SoftBank is expected to ramp up its activity around AI services. Earlier this year, the group invested $200 million directly into Tempus AI, a startup that analyzes medical data. The company now plans to establish a joint venture in Japan. Additionally, SoftBank is reportedly planning to invest $100 billion into AI-related chips in a project named Izanagi.
