Companies

SoftBank Dives Back into AI Arena with a Hefty Investment in Bezos-Backed Perplexity AI

Published June 28, 2024

SoftBank Group Corp. SFTBF, led by the influential Masayoshi Son, is stepping up its game in the artificial intelligence (AI) sector with a major investment move. Following the company's missed opportunity in the impressive rally of Nvidia Corporation NVDA, SoftBank is shifting its investment focus towards an emerging AI contender. The AI startup Perplexity AI, which has received backing from Amazon.com Inc.'s founder Jeff Bezos, is the latest target for SoftBank's investment portfolio.

SoftBank's AI Ambitions

In an effort to reinforce its position within the AI market, SoftBank is reportedly poised to pour capital into Perplexity AI, thus valuing the nascent company at a staggering $3 billion. This move underscores SoftBank's commitment to the vast potential of AI and its applications in various industries, including search, where Perplexity AI is positioning itself as a competitor to the search giant Alphabet Inc. GOOG.

Alphabet and Nvidia: Giants SoftBank Views with Interest

Alphabet Inc., known for its restructuring that birthed Google as one of its subsidiaries, stands as a monumental force in the world of technology as the fourth-largest tech company globally by revenue, with its shares trading under the tickers GOOG and GOOGL. On the other hand, NVDA represents Nvidia Corporation, a significant player specializing in GPUs and SoCs, renowned for its advanced technologies that cater to various markets.

The Competitive Landscape

The AI landscape is fiercely competitive, with major conglomerates like Alphabet and Nvidia carving out substantial chunks of the market. Perplexity AI, backed by figures like Jeff Bezos and potentially funded by SoftBank, is a testament to the growing competition and innovation in this field. The involvement of these prominent companies and investors highlights AI's inherent value and its transformative impact on the future of technology.

SoftBank, AI, Perplexity, Bezos, Nvidia, Alphabet, Investment