SAN FRANCISCO, July 7 (Reuters) - AI startup Perplexity on

Tuesday confirmed it plans to use Nvidia's ( NVDA ) new central

processing units, as the chip giant works to broaden its market

and take on entrenched players such as Intel ( INTC ) and

Advanced Micro Devices ( AMD ).

Nvidia ( NVDA ) has said it expects to generate $20 billion in sales

from its "Vera" CPU, a more generic computing chip than its

AI-specific offerings, by the end of this fiscal year. The Vera

chips are part of Nvidia's ( NVDA ) efforts to diversify sales as

artificial intelligence companies such as OpenAI and DeepSeek

make their own AI chips.

Nvidia ( NVDA ) is entering a crowded market for CPUs long dominated

by Intel ( INTC ) and AMD, who supply CPUs for everything from laptops to

web servers. But many of those chips were designed before the

rise of what are known as AI "agents" that can carry out complex

tasks on their own after receiving instructions from their human

users.

Unlike human users of CPUs, who take breaks between tasks,

AI agents do not. Perplexity Vice President for Computer

Enterprise and Infrastructure Nate Kupp said Nvidia's ( NVDA ) CPU

carried out AI agent coding tasks about 1.5 times faster than

traditional CPUs.

"Vera really stood out to us as just like a dead-on fit for

a lot of the core workloads that we have," Kupp said in an

interview.

Perplexity declined to disclose how many Nvidia CPUs it

plans to buy. Nvidia ( NVDA ) has previously disclosed that OpenAI,

Anthropic and Oracle plan to use its CPUs.