SoftBank Group Corp's Vision Fund 2 is set to invest in US artificial intelligence startup Perplexity AI, valuing the company at $3 billion, according to a report by Bloomberg News.

This move marks Masayoshi Son's latest venture into the AI sector, which he is said to consider crucial for securing his legacy.

The Japanese technology investor plans to inject between $10 million and $20 million into Perplexity as part of a larger $250 million funding round. This investment will triple the startup's valuation, positioning it as one of the most highly valued companies in the industry.

Perplexity, less than two years old, has distinguished itself from other AI chatbots by providing real-time information. The company refers to itself as an "answer engine", delivering results in text format rather than links. In 2023, Perplexity reported serving more than 500 million queries while spending minimal marketing funds.

This deal underscores SoftBank's renewed focus on AI investments. Recently, Son articulated a grand vision for the future of AI, including a commitment to realising what he termed "artificial super intelligence" (ASI). At SoftBank's annual shareholders meeting, Son declared, "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."

The investment in Perplexity builds upon an existing partnership between the two companies. Earlier this year, Perplexity announced a collaboration to offer SoftBank's Japanese wireless customers a complimentary one-year subscription to its service, strengthening its presence in one of Asia's largest markets.

SoftBank's renewed interest in AI investments extends beyond Perplexity. The group recently invested $200 million in Tempus AI, a startup analysing medical data for improved treatments. They also plan to establish a ¥30 billion ($187 million) joint venture to provide similar services in Japan.

As of now, the deal with Perplexity has not been finalised, and terms could still change. Representatives from both companies have declined to comment on the ongoing discussions.

This investment comes at a time when SoftBank is expected to accelerate its activities in AI services, including a reported plan to deploy $100 billion into AI-related chips in a project dubbed Izanagi. As the AI sector continues to evolve rapidly, SoftBank's strategic investments could play a significant role in shaping the future of this transformative technology.

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