how to invest in Perplexity AI
7/18/2025 04:47am
Investing in Perplexity AI involves understanding its current status, future prospects, and the available investment options. Here's a guide on how to invest in Perplexity AI:
1. **Understand the Company's Valuation and Growth**:
- Perplexity AI has recently closed a funding round valuing the company at $14 billion.
- The company has seen significant growth in valuation, from $500 million in December 2024 to $14 billion in May 2025.
- Perplexity AI has an annual recurring revenue (ARR) of just under $100 million.
2. **Consider the Investment Options**:
- **Private Investment**: Perplexity AI is a private company, and its stock is not publicly traded. Retail investors cannot buy its shares directly.
- **Investment Funds**: Investors can participate through funds that invest in Perplexity AI, such as the ARK Venture Fund, which provides exposure to the company.
- **Subscription Model**: For individuals, Perplexity AI offers a subscription plan called Perplexity Max for $200 per month, which provides access to its tools and services.
3. **Evaluate the Long-Term Prospects**:
- Perplexity AI is competing in the AI search market against established players like Google and Microsoft-backed OpenAI.
- The company has been growing rapidly, with a 5-year search growth of 8,600% and a significant increase in monthly active users.
- Perplexity AI has a strong funding base, including investments from notable investors like Jeff Bezos and Yann LeCun.
4. **Assess the Risk and Consideration**:
- Investing in Perplexity AI involves significant risks due to its position as a newcomer challenging Google’s established dominance in the search engine market.
- The company's valuation is high, and it faces intense pressure to justify its premium multiple.
- Potential investors should evaluate the risks and challenges, including the pressure to monetize effectively and maintain technological leadership amid intense competition.
5. **Consult with Financial Professionals**:
- Before investing, it's advisable to consult with a qualified financial professional who can assess your personal circumstances and objectives.
In conclusion, investing in Perplexity AI is currently limited to private investments through funds or subscription models. Retail investors seeking direct investment in Perplexity AI will have to wait for the company to go public, which, according to the CEO, is not planned before 2028.