AI Search Startup Perplexity Achieves a Valuation of $18 Billion! Investments from SoftBank, NVIDIA, and Amazon Targeting Google and OpenAI.
Perplexity in Talks for New Funding Round, Valuation Expected to Reach $18 Billion
Founded less than three years ago and focusing on “reshaping search engines with generative AI,” the AI startup Perplexity is currently in discussions for a new funding round, reportedly amounting to as much as $1 billion, with the company’s valuation poised to double to $18 billion. The investment backing Perplexity includes SoftBank, Nvidia, and Amazon founder Jeff Bezos, preparing to compete with Google and OpenAI in the AI search market.
New Funding Round Discussions Valuing Company at $18 Billion
According to Bloomberg, Perplexity is in talks for a new funding round, with amounts potentially ranging between $500 million to $1 billion, with an overall valuation expected to reach $18 billion, a revision from the previously reported $15 billion valuation a few months ago. However, these discussions are still in the early stages, and Perplexity has declined to comment on this matter.
Founded in 2022, Perplexity has seen its valuation leap from $1 billion to $18 billion in just three years, making it one of the most notable AI search startups.
Perplexity Launches Multiple Features Targeting Google and OpenAI
Perplexity focuses on AI search tools, not just offering free and paid search services but also launching several advanced products:
- Enterprise Document Search Tool: Assists organizations in searching for internal data.
- Financial Tools: Allows users to query stock prices and corporate financial data.
As of March 2024, Perplexity has surpassed 15 million active users, with its current annual recurring revenue (ARR) approaching $100 million, indicating a stable business model.
However, Perplexity’s competitors are not limited to established search engine Google; OpenAI has also entered the fray. At the end of last year, ChatGPT opened its search feature to all users, intensifying the competition in the AI search market.
Powerful Backers: SoftBank, Nvidia, and Bezos Invest
Perplexity boasts a robust lineup of investors, having received support from SoftBank, Vision Fund 2, Nvidia, and industry giant Jeff Bezos. There is currently no clear information on whether this round of funding discussions will attract further investments from these giants.
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