(Bloomberg) — SoftBank Group Corp.’s Vision Fund 2 is investing in U.S. artificial intelligence startup Perplexity AI at a $3 billion valuation, Masayoshi Son’s latest bet in a sector he sees as crucial to secure your legacy.
Bloomberg’s Most Read
SoftBank will invest between $10 million and $20 million in the company, which aims to use AI to compete with Alphabet Inc.’s Google search, according to people familiar with the matter. It is investing as part of a larger $250 million funding round that triples Perplexity’s valuation and makes it one of the most valued companies in the industry.
The deal underscores how SoftBank is preparing to dramatically accelerate its pace of investment in AI. Its billionaire founder last week laid out a sweeping vision for the future of AI, including a commitment to realizing what he called “artificial superintelligence.” Son talked about creating AI thousands of times smarter than any human being, making his most grandiose pronouncements since SoftBank withdrew from the market after a series of ill-timed bets on startups.
“We did a lot of things, but this was all a warm-up to my dream of realizing ASI,” he told investors at an annual shareholder meeting on Friday. “This is what I was born to do.”
The deal has not been finalized and its terms could still change, said the people, who asked not to be identified because the discussions are not public. Representatives for Perplexity and SoftBank declined to comment on the deal negotiations. TechCrunch previously reported some details of the broader funding.
SoftBank’s equity investment reinforces an existing business partnership with Perplexity. This year, the startup announced a partnership to offer SoftBank’s Japanese wireless customers a free one-year subscription to its service. This agreement deepened Perplexity’s ties with Japan, one of the region’s largest markets.
Perplexity, which is less than two years old, has stood out from other AI chatbots by providing more real-time information. Although its main service is search, the startup calls itself an “answer engine” as it provides results in text format rather than links.
It also found controversy over a product that summarizes news, over whether the product gives news outlets due credit for their work.
SoftBank is now expected to accelerate the pace of activity around AI services. The company is working on a plan to invest about $100 billion in AI-related chips in a project called Izanagi, Bloomberg News reported in February. When a shareholder asked last week about Izanagi, Son said he is committed to achieving results and will work hard to achieve his goals, without elaborating.
The group this year directly invested US$200 million in Tempus AI, a startup that analyzes medical data for doctors and patients to find better treatments. They now plan to create a 30 billion yen ($187 million) joint venture to provide much the same service to Japan. On Thursday, Son explained his reasoning for backing Tempus.
Son said he wants data from 50% of Japan’s cancer patients to be analyzed collectively for the purpose of providing more accurate and accurate diagnoses. He said he wants to make it happen in Japan in a few years.
“I want to reduce the sadness caused by illness, reduce the sadness due to death,” Son told reporters. “I can’t reset them, but I want to reduce them at least.”
–With help from Katie Roof.
(Updates with comments from Son in final three paragraphs)
Bloomberg Businessweek Most Read
©2024 Bloomberg LP
