Perplexity AI, an emerging player in the AI search tool market, is in discussions to raise funds at a new valuation of $18 billion, a significant increase from its previous $9 billion valuation in November. The startup, which is backed by Nvidia, Amazon’s Jeff Bezos, and Japan’s SoftBank Group, is capitalizing on the surging demand for AI-driven search tools.
The company aims to raise between $500 million and $1 billion in this funding round, sources familiar with the matter told Reuters. The heightened interest in AI-powered chatbots and virtual agents has fueled investor enthusiasm for startups like Perplexity AI, which competes with established players such as Google’s Gemini and Microsoft-backed OpenAI’s ChatGPT.
Perplexity has been enhancing its platform to improve its competitive edge. Recently, it introduced a new web browser, Comet, which integrates AI to understand complex queries, perform tasks, and make decisions. Its “Deep Research” feature allows users to conduct in-depth research by searching through numerous sources, offering a more comprehensive overview on various topics.
Despite facing criticism from media outlets like News Corp-owned Forbes and Wired over accusations of plagiarism, Perplexity has forged partnerships with publishers to address these concerns.
The ongoing fundraising talks underscore the growing potential of AI startups, as companies like OpenAI also continue to dominate the sector with massive valuations, such as their $157 billion valuation following a $6.6 billion funding round in October.
