The SoftBank Group Corp.’s Vision Fund 2 is set to invest in US-based artificial intelligence startup Perplexity AI, valuing the company at $3 billion. SoftBank will invest between $10 million and $20 million in Perplexity.
According to a Bloomberg report, this round of funding is part of a $250 million series and is a massive boost to Perplexity’s valuation, putting it on par with the leading players in the industry. Perplexity AI, which was founded less than two years ago, has the goal of matching Google’s AI-based search functionality.
SoftBank’s founder, Masayoshi Son, prioritizes AI as a critical focus area for the firm, aiming to achieve “artificial super intelligence” (ASI). Despite past losses in startup investments, Son remains steadfast in supporting AI development.
Despite past startup failures, SoftBank remains committed to advancing AI technologies, with the agreement with Perplexity AI in the early stages, involving a partnership offering free access to its services for a year to SoftBank’s wireless customers in Japan.
This partnership enables Perplexity AI to grow its footprint in Japan, a crucial market in the region, leveraging its status as an “answer engine” offering real-time information in text format since its founding less than two years ago.
However, its news summary feature has been criticized for possible problems with content source identification. It is important to note that the new focus on AI at SoftBank does not end with Perplexity. In January this year, the conglomerate invested $200m in Tempus AI, a medical data analytics firm.
There is also a plan to establish a new AI partnership in Japan to improve the AI services even more. Further, SoftBank is said to be moving forward with a $100 billion plan called Izanagi to invest in chips used in AI, which further shows its interest in technology in the AI space.
Perplexity and SoftBank’s representatives did not wish to disclose details on the negotiations regarding the investment agreement. The details of the partnership between Perplexity AI and Softbank were first disclosed on 18th June.Â
This is a clear indication of SoftBank upping the ante in its AI investment plan, a move that is in line with the company’s chief, Masayoshi Son’s vision of being at the forefront of the future of artificial intelligence technologies.
