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SoftBank Group Bets Big on Perplexity AI with Substantial Investment
SoftBank Group Corp.’s Vision Fund 2 is set to significantly invest in U.S. artificial intelligence startup Perplexity AI, reflecting Masayoshi Son’s increasing focus on AI as critical to his legacy. This new investment, between $10 million and $20 million, will contribute to a larger $250 million funding round, valuing Perplexity AI at $3 billion, according to sources familiar with the matter. This places Perplexity among the highest valued startups in the AI industry.
This strategic move underscores SoftBank’s intent to accelerate its involvement in AI, with Son recently outlining an ambitious future for AI technology, including the creation of what he calls "artificial super intelligence" (ASI). He envisions AI becoming thousands of times smarter than humans, a bold vision presented during an annual shareholders meeting where Son declared it as his life’s ultimate goal.
The details of the investment have not yet been finalized, and the terms may still change, according to inside sources. Meanwhile, representatives for both Perplexity and SoftBank have declined to comment on the ongoing discussions. A previous report by TechCrunch highlighted aspects of the broader funding effort.
Earlier this year, Perplexity AI enhanced its business relationship with SoftBank by offering a free one-year subscription to its service to SoftBank’s Japanese wireless customers. This partnership deepened Perplexity’s access to the Japanese market, which is notably significant in the region. As a startup less than two years old, Perplexity differentiates itself by providing real-time information through an "answer engine" rather than traditional search results in link format. However, the company has faced controversy regarding its news story summarization product, specifically over concerns about properly crediting news outlets.
SoftBank appears poised to ramp up its activities surrounding AI, as shown by its $200 million investment in Tempus AI, another startup focused on medical data analysis. Plans to establish a joint venture in Japan also indicate how central AI technology is to SoftBank’s future strategies.
Furthermore, SoftBank is developing a substantial project named Izanagi, which aims to invest approximately $100 billion into AI-related chips. Although specific details remain sparse, Son reassured shareholders of his commitment to achieving notable results from these ventures.
Rapid Expansion into AI
These developments indicate a decisive shift for SoftBank towards rapid expansion within the AI sector. Son’s grand vision for AI, along with substantial investments in emerging AI technologies, marks a renewed and intensified focus on fostering innovation in this crucial field.
