Nvidia, the company that makes powerful computer chips, has teamed up with Perplexity, an AI search company, to create special AI tools named “sovereign AI” just for Europeans. The partnership was announced on Wednesday.
Two major tech companies are making a big move in Europe. Nvidia, the computer chip giant, and Perplexity, a rising AI search company, announced Wednesday they’re teaming up to create special AI tools just for European users.
The partnership centers around what they call “sovereign AI” – artificial intelligence models that are built locally and speak the languages of the countries where they’re used. Instead of relying on AI systems developed primarily in the United States, European businesses and users will get AI that understands their specific languages and cultures.
“We reached out to and have talked to about 13 AI model builders in the region, to be able to say that we’re going to help them train models,” explained Kari Briski (Nvidia’s vice president of generative AI software for enterprise). “To be able to both train on the languages that are unique to their culture, and then offer them in Perplexity.”
The new AI models will work through Perplexity’s search platform— allowing users to ask questions and get answers in any of the European Union’s 24 official languages. These models will run on European computer infrastructure through local partners, including French AI company H Company.
For Nvidia CEO Jensen Huang, this concept of countries building their own AI systems is crucial for the company’s future growth. He’s been pushing the idea of “sovereign AI” as nations become more interested in controlling their own artificial intelligence capabilities rather than depending on foreign companies.
The partnership includes some interesting European players. Countries like Slovakia and institutions like the University of Ljubljana in Slovenia are working with Nvidia to create AI models that specialize in their national languages and cultures.
This European expansion is just part of Nvidia’s global strategy. Recently Nvidia has been making deals around the world, including a massive chip agreement with the UAE and plans for a supercomputer in Taiwan. Their recent partnerships in the U.K. around sovereign AI show they’re serious about expanding beyond their home base.
“Expanding Nvidia’s reach in Europe, including its recent partnerships in the U.K. around sovereign AI, is part of the plan for making AI more accessible to more people and enterprises around the world—all of which ultimately benefits Nvidia’s chip business,” said Jim McGregor (founder of Tirias Research).
This partnership comes at a perfect time for Perplexity. This AI search company has been growing rapidly since ChatGPT sparked public interest in AI tools back in 2022.
The company has been attracting serious investor attention. Reports suggest Perplexity was recently in talks to raise $500 million, which would value the company at $14 billion – a jump of more than 50% from late last year.
The Perplexity’s CEO, Aravind Srinivas, believes different regions should have AI tools that fit their needs. “I don’t think the world should have just one AI model for everyone,” he said. “People should be able to build custom AI that matches their culture and preferences.”
Meanwhile, the philosophy fits perfectly with Nvidia’s sovereign AI push. Instead of one-size-fits-all artificial intelligence, both companies are betting that different regions want AI systems that understand their specific needs, languages, and cultural contexts.
As European regulators create stricter rules about technology and data privacy, having locally-built AI systems becomes more attractive. Companies in highly regulated industries especially need AI tools that comply with local laws and regulations.
McGregor from Tirias Research expects this trend to continue. “It’s likely that as regions like Europe expand their rules for sovereign technology—especially for highly regulated sectors—and have a greater need for localized AI, there will be more local versions of Perplexity and AI tools like it,” he said.
Perplexity has advantages beyond just technology by working with Nvidia. The partnership raises Perplexity’s profile as it competes against much larger rivals like OpenAI, which has billions more in funding and resources.
The two companies aren’t new partners. Srinivas revealed that Nvidia and Perplexity have been working together since early 2024. Perplexity already uses Nvidia’s computer chips and some of its AI models to power its search service.
Despite these challenges, both Nvidia and Perplexity see Europe as a crucial market for their growth plans. As more countries and companies want AI systems that reflect their local needs and comply with their regulations, partnerships like this one may become the new normal in the rapidly evolving world of artificial intelligence.
