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SoftBank Group Corp.βs Vision Fund 2 is investing in US artificial intelligence startup Perplexity AI at a $3 billion valuation, Masayoshi Sonβs latest bet on a sector he deems crucial to securing his legacy. SoftBank will invest between $10 million and $20 million in the firm, which aims to use AI to compete with Alphabet Inc.βs Google search, according to people familiar with the matter. Itβs investing as part of a larger $250 million funding round that triples Perplexityβs valuation and makes it one of the industryβs most highly valued companies.
- SoftBank’s Investment in Perplexity AI
- Vision Fund 2 invests $10-20 million in Perplexity AI
- Perplexity AI aims to compete with Google using AI
- $250 million funding round triples Perplexity’s valuation
The deal underscores how SoftBank is preparing to sharply accelerate its pace of AI investment. Its billionaire founder last week laid out a sprawling vision for the future of AI, including a commitment to realize what he called βartificial super intelligenceβ. Son talked about creating AI thousands of times smarter than any human, making his most grandiose pronouncements since SoftBank retreated from the market following a string of ill-timed startup bets.
- SoftBank’s Future Plans in AI
- Preparation to accelerate AI investment
- Focus on artificial super intelligence
- Grand vision for the future of AI
Representatives for Perplexity and SoftBank declined to comment on the deal talks. TechCrunch previously reported some details of the broader financing. SoftBankβs equity investment shores up an existing business tie-up with Perplexity. This year, the startup announced a partnership to offer SoftBankβs Japanese wireless customers a free one-year subscription to its service. That arrangement deepened Perplexityβs ties to Japan, one of the regionβs biggest markets.
- SoftBank’s Equity Investment and Business Tie-Up
- Representatives decline to comment on deal talks
- Equity investment strengthens tie-up with Perplexity
- Partnership with Japanese wireless customers
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Perplexity, which is less than two years old, has distinguished itself from other AI chatbots by providing more real-time information. While its primary service is search, the startup calls itself an βanswer engineβ as it provides results in text format instead of links. Itβs also encountered controversy over a product that summarizes news stories, over whether the product gives outlets due credit for their work. SoftBank is now expected to quicken the pace of activity around AI services. The group this year directly invested $200 million into Tempus AI, a startup that analyzes medical data. They now plan to set up a joint venture in Japan.
- Perplexity’s Unique Offerings
- Distinguishing features of Perplexity AI
- Controversy over news story summarization product
- SoftBank’s acceleration of AI activities
SoftBank is also working on a plan to deploy some $100 billion into AI-related chips in a project dubbed Izanagi, Bloomberg News reported in February. When a shareholder asked last week about Izanagi, Son said heβs committed to obtaining results and that he will work hard to achieve his goals, without elaborating.
Hot Take: SoftBank’s Grand Vision for the Future
SoftBank Group Corp.βs Vision Fund 2 invests in Perplexity AI, marking a significant step towards accelerating AI investment. With a focus on artificial super intelligence, the investment solidifies ties with Perplexity and opens new opportunities in Japan. As SoftBank amplifies its activities in the AI space, the future looks promising with groundbreaking developments on the horizon.
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