Perplexity AI is in discussions to raise between $500 million and $1 billion in funding, targeting a valuation of $18 billion, according to a source familiar with the matter.
Per Reuters, the AI-powered search startup, backed by investors including Amazon founder Jeff Bezos and SoftBank, is looking to scale its operations as demand for AI-driven search continues to grow.
The company, which provides real-time search results by scanning the internet, has quickly increased its market value. In mid-2024, Perplexity was valued at $3 billion, a figure that jumped to $9 billion by December.
If the latest funding round materialises, the valuation will double again, placing Perplexity as one of the most valuable AI startups.
With the rise of AI-powered tools, Perplexity has been enhancing its platform to compete with Google’s Gemini and OpenAI’s ChatGPT. The startup recently teased Comet, a web browser designed to handle complex queries, automate tasks, and make independent decisions.
Its Deep Research feature further strengthens its offering by scanning multiple sources to generate comprehensive reports.
Competition in the AI search sector is increasing. OpenAI has integrated search into ChatGPT, while Google has rolled out AI Overviews within its search engine—though not without controversy due to factual errors. Anthropic, another AI company, has also introduced a search-enabled chatbot, increasing the pressure on Perplexity to differentiate itself.
Nonetheless, Perplexity has been warned by news organisations, including Forbes and Wired, for allegedly repurposing content without proper attribution.
In response, the company introduced a revenue-sharing model, pledging to compensate publishers when their content is cited in AI-generated responses that generate ad revenue.
