Perplexity AI Raises $500M Funding Round

Perplexity Secures $500 Million Funding, Reaching $9 Billion Valuation

Perplexity, the AI-driven search engine, has allegedly finalized a $500 million funding round. This substantial investment has resulted in a company valuation of $9 billion.

Sources familiar with the matter, as reported by Bloomberg, indicate that Institutional Venture Partners spearheaded the funding. The round was completed earlier this month in December.

A spokesperson for Perplexity refrained from providing a comment when contacted by TechCrunch via email.

Increased Competition in AI Search

This significant funding injection arrives amidst intensifying competition within the AI-powered search landscape. OpenAI has recently introduced ChatGPT Search, directly challenging Perplexity’s position.

Furthermore, Google is actively developing features designed to compete with Perplexity’s offerings. These include AI-generated summaries and direct answers integrated into search results pages.

Reports suggest Google is preparing a more assertive strategy. The Information detailed plans for a chatbot-style “AI mode” to be integrated directly into the core Google Search experience.

Strategic Acquisitions and Ongoing Legal Challenges

Despite facing a class action lawsuit alleging copyright infringement, Perplexity continues to expand its capabilities. The company has been proactively pursuing strategic acquisitions.

On Wednesday, Perplexity announced its second acquisition: Carbon. This startup specializes in linking AI systems with external data sources, enhancing Perplexity’s functionality.

This acquisition demonstrates Perplexity’s commitment to innovation and maintaining a competitive edge in the rapidly evolving AI search market.