Are you looking to invest in Perplexity AI, which is, by many, considered the next big thing in tech? Perplexity AI has been causing a lot of noise in the tech world, and many regular people and investors are eager to get a piece of the action. This guide will walk you through the current situation of Perplexity AI investment opportunities and what you need to know before making any financial moves.
Quick Relevant Facts About Perplexity AI
Before we jump into investment strategies, let’s quickly cover what Perplexity AI is, okay?
- Founded in August 2022 by AI experts, including former OpenAI employee Aravind Srinivas
- Uses a conversational interface to revolutionize online search
- Valued at $3 billion as of June 2024
- Attracted significant investments from notable figures and companies, including Jeff Bezos, NVIDIA, former Y Combinator head Daniel Gross, and others
Can You Buy Perplexity AI Stock?
The short answer is: not yet. Perplexity AI is not currently a publicly traded company, which means you can’t simply log into your favorite brokerage account and buy Perplexity AI stock. Or at least not yet. However, there are still ways to potentially benefit from Perplexity’s growth, so let’s get into it.
How to Invest in Perplexity: Current Options
While direct investment in Perplexity AI stock isn’t possible right now, here are some alternatives for anyone looking to invest in Perplexity:
- Indirect Investment through Nvidia
- Nvidia, a leader in AI hardware, owns shares in Perplexity.
- You can invest in Nvidia stock (NASDAQ: NVDA) to gain indirect exposure to Perplexity.
- ETFs with Nvidia Holdings
- Consider ETFs that include Nvidia in their portfolio, such as:
- Van Eck Semiconductor ETF (SMH)
- Invesco QQQ Trust (QQQ)
- Vanguard 500 Index Fund ETF (VOO)
- Consider ETFs that include Nvidia in their portfolio, such as:
- Wait for the Perplexity AI IPO
- Keep an eye out for news of a potential Initial Public Offering (IPO).
- While there are no current plans, fast-growing tech companies often consider going public.
- Keep in mind that it took Google approximately 6 years after its incorporation to have its IPO.
- Venture Capital or Private Equity
- For accredited investors (probably not you), there may be opportunities through VC firms or private equity.
- This option is typically limited to high-net-worth individuals or institutional investors (again, probably not you!).
Factors to Consider Before Investing in Perplexity AI
When considering how to invest in Perplexity, keep these points in mind:
- Company Stage: Perplexity is still in its early growth phase, making any investment like this “high-risk.”
- Financial Status: The company is not yet profitable, with annual revenue expected to hit approximately $35 million before the end of 2024.
- Market Potential: Perplexity is targeting the massive search engine market, completely dominated by Lord Google. Could it replace Google?
- Competitive Landscape: Consider how Perplexity stacks up against other AI chatbots and search tools. Do you think it’s the best?
Future of Perplexity AI Stock
While Perplexity AI stock isn’t available now, which probably makes you a sad panda, the company’s trajectory suggests it could become a publicly traded entity in the future:
- Perplexity is currently considered a “unicorn” company.
- Backed by high-profile investors like Jeff Bezos and former YouTube CEO Susan Wojcicki.
- Rapidly growing user base, with 15 million monthly active users reported in Q1 2024.
Wrapping it up: How to Invest in Perplexity AI
For now, the most accessible way to invest in Perplexity AI is through indirect means, primarily by investing in Nvidia or related ETFs. As always, it’s critical to do your own research and consider your financial goals and risk tolerance before making any investment decisions. That’s not our job; it’s yours!
Keep an eye on Perplexity AI’s progress and any announcements regarding public offerings. The landscape of AI investment is constantly changing, and staying informed is key to making smart investment choices.
Disclaimer: This article is for informational purposes only and not investment advice. Investing involves risk of loss. Do your own research, consider your financial goals and risk tolerance, and consult a registered investment advisor before making investment decisions. By reading this article, you acknowledge that you’ve been advised of the risks and release the author, publisher, and affiliates from any liability for losses or damages resulting from the use of this information.
