Perplexity AI reportedly in talks to raise new funding at $18 billion valuation
Perplexity AI Inc., the rapidly growing AI search startup, is in early discussions to raise new funding at a valuation of $18 billion, potentially doubling its previous valuation. The company is exploring a financing round that could bring in between $500 million and $1 billion, according to a source familiar with the matter. Given the early stage of negotiations, details are subject to change.
Previously, The Information reported that Perplexity had received funding offers at a $15 billion valuation, but the company has not commented on the ongoing discussions. Founded in 2022, Perplexity has gained prominence as a major player in the generative AI space, rethinking how core internet services function.
In 2023, the company’s valuation surged from $1 billion to $3 billion before tripling again just months later, highlighting the intense investor interest in artificial intelligence
Expanding market presence amid rising competition
Perplexity’s current annual recurring revenue stands at nearly $100 million, with the company reporting over 15 million active users as of March 2024. However, competition is heating up as Google and OpenAI push forward with their own AI-driven search products. OpenAI recently integrated a search feature into ChatGPT, and Google is testing an AI-powered search engine called AI Mode.
To stay ahead, Perplexity has integrated web search into its AI chatbot, Claude. Currently available in preview for paid users in the US, the feature allows Claude to pull real-time information from the web, providing direct citations to enhance fact-checking. Free-tier availability and expanded international support are expected soon.
New offerings and strategic moves
Beyond its core AI search capabilities, Perplexity is broadening its enterprise offerings. The company recently launched an AI-powered search engine designed to help businesses retrieve information from internal documents. It has also introduced finance-related tools, including stock price lookups and company earnings data analysis.
In yet another strategic move, Perplexity has teased the launch of an “agentic” browser called Comet. While details remain sparse, the company has opened a sign-up list for interested users. Industry experts speculate that Comet could serve as a differentiator in the increasingly competitive AI space.
Backing from high-profile investors
Perplexity’s rapid rise has been supported by some of the biggest names in technology and investment, including SoftBank’s Vision Fund 2, Nvidia, and Amazon founder Jeff Bezos. It remains unclear which investors are participating in the latest funding discussions.
