SoftBank Group Corp.'s Vision Fund 2 is making a massive investment in the US-based artificial intelligence startup Perplexity AI, valuing the company at $3 billion.
SoftBank's investment is expected to range anywhere between $10 million and $20 million. It is part of a larger $250 million funding round that will give an upshot to Perplexity AI's valuation. This will make the AI startup one of the most highly valued companies.
Last week Masayoshi Son shared his vision for the future of AI, including a commitment to achieving "artificial super intelligence." Son also mentioned about developing an AI product that would be thousands of times smarter than any human. This was perhaps one of his most ambitious statements after it witnessed a series of poorly timed startup investments.
As per sources cited in the report, the investment deal with Perplexity AI is still under negotiation and its terms are subject to change.
However, this comes at a time when competition in the AI space is rising. Every company is trying hard to be a runner in the AI marathon through partnerships, tie-ups, adoption of advanced technology or simply by hiring people with advanced skill sets.
While the AI startup is relatively new in the space (less than 2 years), it has set itself apart from other AI chatbots by providing real-time information delivery.
Unlike traditional search engines, Perplexity calls itself an "answer engine," presenting results in text rather than directing users to links.
Perplexity AI has also faced backlash recently around its news summarization product, as concerns rose around how well it credits original news sources for their work.
Meanwhile, SoftBank is planning to invest around $100 billion in AI-related semiconductor chips under a project named Izanagi.
