Perplexity in early talks for funding at US$18 billion value
The startup has a product that allows organisations to search internal files and introduced new finance-related features, including a tool to look up stock prices and company earnings data
[SAN FRANCISCO] Perplexity AI, a startup building an artificial intelligence (AI) search engine to compete with Google, is in early talks to double its valuation to US$18 billion in a new funding round, according to a source familiar with the matter.
The company has discussed raising as much as US$500 million to US$1 billion in the round, according to the source, who asked not to be identified because the information is not public. The conversations are still early and the details could change.
The Information previously reported Perplexity had received funding offers at a US$15 billion valuation. Perplexity declined to comment.
Founded in 2022, Perplexity has emerged as one of the most prominent startups using generative AI to rethink core Internet services. Last year, Perplexity tripled its valuation from US$1 billion to US$3 billion and then tripled it again several months later, a sign of the immense investor interest in all things AI. The new US$18 billion valuation would include the amount raised in the round.
Perplexity offers several services in addition to the paid and free versions of its search tool. The startup has a product that allows organisations to search internal files and introduced new finance-related features, including a tool to look up stock prices and company earnings data.
The company’s current annual recurring revenue is nearly US$100 million, the source said. Perplexity said it had more than 15 million active users as at last March.
However, the startup faces growing competition from Google and OpenAI in its core search business. OpenAI rolled out a search product to all users of its chatbot ChatGPT at the end of last year.
Perplexity is backed by SoftBank Group’s Vision Fund 2, Nvidia and Amazon.com founder Jeff Bezos, among others. It’s unclear which investors are in talks for the new round. BLOOMBERG
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