SoftBank’s equity investment supports Perplexity’s current business partnership. This year, the startup revealed a collaboration to provide a complimentary one-year service subscription to SoftBank’s Japanese wireless clients
Masayoshi Son’s latest venture into a field he believes will be essential in protecting his legacy is the $3 billion valuation of SoftBank Group’s Vision Fund 2, which is investing in the US AI firm Perplexity AI.
According to the people familiar with the matter, SoftBank will invest between $10 million and $20 million in the company, which uses Artificial Intelligence to compete with Alphabet’s Google search engine.
Participating in a broader $250 million fundraising round boosts Perplexity’s valuation threefold and establishes it as one of the most valuable companies in the industry.
The transaction demonstrates how SoftBank is getting ready to invest in AI at a much faster rate. Last week, the company’s billionaire founder unveiled a comprehensive plan for artificial intelligence that included a pledge to achieve “artificial super intelligence.”
Son made some of his most ambitious statements since SoftBank pulled out of the market after a series of poorly timed startup bets, talking about building AI that is hundreds of times smarter than any human.
“We’ve done many things, but all that’s been a warmup for my dream to realize ASI,” he said to investors on Friday during the annual shareholders meeting. “This is what I was born to do.”
The individuals who wished to remain anonymous since the talks aren’t public stated that the agreement hasn’t been sealed and that its conditions could yet change. SoftBank and Perplexity representatives declined to comment on the negotiations for the purchase. Previously, TechCrunch revealed certain information about the wider funding.
SoftBank’s equity investment supports Perplexity’s current business partnership. This year, the startup revealed a collaboration to provide a complimentary one-year service subscription to SoftBank’s Japanese wireless clients. With that agreement, Perplexity’s connections to Japan—one of the largest markets in the area—were strengthened.
Less than two years old, Perplexity has set itself apart from other AI chatbots by offering more up-to-date information. The firm refers to itself as a “answer engine” even though its main offering is search; instead of offering links, it presents results in text format.
A product that summaries news articles has also generated debate on whether or not media outlets are properly credited for their contributions.
It is currently anticipated that SoftBank would pick up the pace of AI service development. This year, the group gave Tempus AI, a business that analyzes medical data, a direct $200 million investment. They now intend to establish a cooperative business in Japan.
According to a February Bloomberg News story, SoftBank is also developing a plan to invest about $100 billion in AI-related chips under a project called Izanagi. Son gave a brief response to a question regarding Izanagi from a shareholder last week, saying just that he is dedicated to getting results and that he will work hard to accomplish his objectives.