Perplexity AI Raises $100M, Valued at $18B Following New Funding Round

Perplexity, an AI search startup backed by Nvidia, has raised $100 million in a funding round that values the company at $18 billion. The startup is focused on developing advanced search capabilities using artificial intelligence. The funding is an extension of a previous round, which is not specified. The valuation of $18 billion makes Perplexity one of the most valuable AI startups in the world.

AI search startup Perplexity has secured an additional $100 million in funding, pushing its valuation to $18 billion. This latest funding round comes on the heels of the company's previous round, which valued it at $14 billion [1]. The new investment is led by Nvidia, SoftBank’s Vision Fund 2, and venture capital firms New Enterprise Associates and IVP [2].

Founded in 2022, Perplexity has swiftly grown to become a major player in the AI-driven search landscape. The company's rapid expansion is evident in its revenue growth, with annualized revenues jumping from $35 million in August 2023 to $150 million this month [1]. Perplexity's success can be attributed to its innovative approach, combining conversational AI with task automation to create a search engine and browser platform that goes beyond traditional keyword-based results [1].

The company's latest product, Comet, is an AI web browser designed to act as a digital agent capable of executing commands, summarizing social feeds, shopping online, and sending emails based on voice or text prompts [1]. This feature set positions Perplexity ahead of competitors like OpenAI and Anthropic, which have only recently begun exploring similar monetization paths [1].

Perplexity's valuation surge underscores the intense investor interest in AI-driven search technologies. The company's growth comes amid a broader wave of deals between fast-scaling AI startups and Big Tech firms. For instance, Meta invested $15 billion into Scale AI, while Google spent $2.4 billion to onboard leadership from coding startup Windsurf [1]. These moves reflect the tech giants' desperation to close gaps in AI capability and provide new exit routes for ambitious founders and their investors [1].

Despite its momentum, Perplexity remains a minnow compared to Google, which commands billions of users and has deeply entrenched infrastructure. The company also faces stiff competition from other AI-driven startups like OpenAI, Anthropic, and a growing ecosystem of generative tech firms racing toward similar goals [1].

Perplexity's CEO, Aravind Srinivas, has repeatedly denied speculation that the company is entertaining acquisition offers. Instead, he has signaled his ambition to take the company public, aiming to solidify Perplexity's role as a long-term player in the evolving internet landscape [1]. As valuations skyrocket and investor appetite shows no signs of cooling, Perplexity's challenge now lies in maintaining its trajectory and delivering on the promise to reinvent how humans search, browse, and interact with the web.

References:
[1] https://slguardian.org/ai-search-startup-perplexity-hits-18-billion-valuation-amid-investor-frenzy/
[2] https://stocktwits.com/news-articles/markets/equity/perplexity-reportedly-boosts-valuation-to-18-b-following-fresh-funding-round-as-ai-frenzy-picks-up-steam/ch8kBYPR5pL