Perplexity AI Funding: Reportedly Raising $1B at $18B Valuation

Perplexity AI Explores $1 Billion Funding Round

Perplexity, an innovative search startup leveraging artificial intelligence, is reportedly initiating discussions for a new funding round. Sources suggest the potential raise could reach up to $1 billion.

Valuation and Revenue Growth

The prospective funding would value the company at $18 billion. This represents a significant increase from Perplexity’s valuation of $9 billion as recently as December.

According to a report by Bloomberg, citing an insider, Perplexity has achieved an annual recurring revenue of $100 million.

The company’s valuation has experienced substantial growth, having been assessed at $1 billion in April 2024.

Increased Competition in AI Search

News of this potential funding arrives amid intensifying competition within the AI-powered search sector.

Anthropic recently integrated web search capabilities into its Claude AI chatbot on Thursday. Prior to this, in March, Google introduced an initial version of its chat-based AI search engine, known as AI Mode, to a select group of testers.

Expansion into New Markets

Facing a more crowded core market, Perplexity is actively pursuing expansion into new areas.

The startup has previewed the upcoming release of Comet, an “agentic” browser. Furthermore, it is bolstering its enterprise-focused services.

Recently, Perplexity launched an AI search engine designed to assist businesses in accessing information from their internal documentation.

Seeking Confirmation

We have contacted Perplexity to request confirmation regarding the fundraising reports. This article will be updated should a response be received.

Here's a summary of key developments:

• Perplexity is seeking up to $1 billion in funding.
• The potential valuation is $18 billion.
• Annual recurring revenue has reached $100 million.
• Competition is increasing from companies like Anthropic and Google.
• Perplexity is expanding into enterprise solutions and a new browser, Comet.