SoftBank is reportedly investing in the startup Perplexity AI, which mainly develops search engine business, in an attempt to break Google's monopoly in the industry. The two companies had previously collaborated, and the additional private equity investment in Perplexity's financing is one of SoftBank's signals to further deepen cooperation. The transaction has not yet been finalized and the terms may still change.
On June 27th, Cailianshe News (Editor Maran) reported that SoftBank Group is further expanding its AI business. Sources said that the Vision Fund 2 of the group will invest 10-20 million U.S. dollars in Perplexity AI, a U.S. search start-up, with an overall valuation of $3 billion.
This round of financing may triple Perplexity's valuation, making it one of the highest-valued companies in the industry. However, the investment is reportedly not yet finalized and terms may still change.
Perplexity is attempting to compete with Alphabet's flagship search engine, Google, using artificial intelligence. Although the company's business is essentially a search engine, Perplexity claims that its service is an "answer engine" because it responds to users in text format rather than links.
The product has also sparked controversy because of its use of excerpts from news reports. Some have pointed out that the product may be involved in improper use of media content.
SoftBank's AI Dream
In January of this year, Perplexity raised $73.6 million from Nvidia and Amazon founder Bezos, with a valuation at the time of $520 million.
SoftBank's equity investment this time consolidates its business cooperation with Perplexity. Previously, the two companies announced that they would jointly provide SoftBank's wireless customers in Japan with a one-year free subscription service.
This transaction also highlights SoftBank's investment ambitions in the field of AI. Previously, SoftBank founder Masayoshi Son said he would realize the dream of "super artificial intelligence" and develop artificial intelligence that is thousands of times smarter than humans.
In February, SoftBank announced plans to invest $100 billion in developing AI-related chips and named the project "Iyana Naga", after a Japanese traditional god. However, SoftBank has not yet disclosed the detailed development process of Iyana Naga.
In addition to Perplexity and SoftBank's own Iyana Naga, the group also invested $200 million in medical data analysis start-up Tempus AI this year and attempted to establish a joint venture in Japan.
Last Friday, Masayoshi Son emphasized at the SoftBank Shareholders' Meeting that the group has made a lot of efforts to realize the dream of super artificial intelligence, which is his mission in life.