SoftBank Group Corp.’s Vision Fund 2 is making a significant investment in US-based artificial intelligence startup Perplexity AI, valuing the company at $3 billion. This latest move by SoftBank’s founder, Masayoshi Son, underscores his commitment to the AI sector, which he views as vital for securing his legacy. According to sources familiar with the matter, SoftBank will invest between $10 million and $20 million in Perplexity as part of a larger $250 million funding round. This infusion of capital triples Perplexity’s valuation, positioning it as one of the industry’s most highly valued companies.
Image Source: reuters.com
The deal highlights SoftBank’s strategy to accelerate its investments in AI. Recently, Son shared an ambitious vision for the future of AI, which includes developing “artificial super intelligence” (ASI), an AI system thousands of times smarter than any human. Speaking at an annual shareholders meeting, Son emphasized, “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.”
While the deal is not yet finalized and the terms could change, representatives for Perplexity and SoftBank have declined to comment on the ongoing discussions. Some details of the broader financing were initially reported by TechCrunch.
Strategic Partnerships and Controversies
SoftBank’s equity investment also reinforces an existing business relationship with Perplexity. Earlier this year, Perplexity announced a partnership to offer SoftBank’s Japanese wireless customers a free one-year subscription to its service. This collaboration has strengthened Perplexity’s presence in Japan, a significant market for the company.
Perplexity, established less than two years ago, has set itself apart from other AI chatbots by delivering more real-time information. Although primarily a search service, Perplexity describes itself as an “answer engine” that provides text-based results instead of traditional links. However, the startup has faced controversy regarding a product that summarizes news stories, raising questions about whether it adequately credits original news outlets.
SoftBank is expected to further intensify its focus on AI services. According to a Bloomberg report in February, SoftBank is planning to invest around $100 billion into AI-related chips under a project named Izanagi. When asked about Izanagi at the recent shareholders meeting, Son expressed his commitment to achieving tangible results but did not provide additional details.
In addition to Perplexity, SoftBank has been actively investing in other AI ventures. This year, the company invested $200 million directly into Tempus AI, a startup that analyzes medical data to improve treatment options for doctors and patients. They also plan to establish a ¥30 billion ($187 million) joint venture to offer similar services in Japan. Son explained his rationale for supporting Tempus during his recent address to shareholders, emphasizing his dedication to advancing AI technology.
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