AI Search Startup Perplexity in Talks for $9 Billion Valuation

Perplexity AI Inc., an artificial intelligence firm developing a search product intended to rival Google, is in initial discussions to secure funding from investors, aiming for a valuation of approximately $9 billion, as reported by a source close to the matter.

The company is looking to raise over $500 million in this funding round, according to the source, who requested anonymity while discussing confidential details.

The new valuation, which incorporates the funds the company plans to raise, could potentially triple its previous valuation of $3 billion from an earlier funding round this year. However, these discussions are still in the early stages, and the details may change or the talks may not materialize. The company has opted not to comment.

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Perplexity’s valuation has skyrocketed in recent months, reflecting a strong interest from venture capitalists in supporting AI companies. Just in April, the startup was valued at only $1 billion. Its competitors have also seen significant funding, including OpenAI, which recently completed a $6.6 billion financing round at a valuation of $157 billion.

Perplexity’s recent funding discussions arose after investors reached out to the company, rather than the startup actively seeking new capital, according to the source.

In addition to its paid and free versions of the search tool, Perplexity offers a variety of services. Recently, it launched a product that enables organizations to search internal files alongside online content and introduced new features for finance-related queries, including stock prices and company earnings data.

About Perplexity

Perplexity: The ultimate answer engine. Fueling curiosity with answers grounded in the latest sources. This is where knowledge starts