Perplexity AI is in discussions to raise funds at an $18 billion valuation, according to a source familiar with the matter. This new valuation marks a doubling from the previous figure reported in November.
As an AI startup, Perplexity provides information by searching the internet, similar to ChatGPT and Google's Gemini, and is supported by notable investors including Jeff Bezos and SoftBank Group. The company is looking to raise between $500 million and $1 billion in this funding round.
The increasing adoption of chatbots and AI agents has heightened investor interest in startups like Perplexity. The company has been enhancing its platform to better compete with established players such as Google's Gemini and Microsoft-backed OpenAI's ChatGPT.
Recently, Perplexity previewed a new web browser called Comet, which utilizes AI to retrieve information, understand complex queries, execute tasks, and make decisions. Its Deep Research feature can conduct extensive research by performing numerous searches and analyzing hundreds of sources to provide comprehensive reports.
Perplexity positions itself among the leading challengers in the search engine market, competing with incumbents like Alphabet's Google. However, it has faced allegations of plagiarism and content copying from media organizations such as News Corp-owned outlets, Forbes, and Wired, though it has initiated a publisher partnership program to collaborate with news firms.
In contrast, OpenAI secured a $6.6 billion funding round in October, potentially valuing the company at $157 billion and solidifying its status as one of the most valuable private companies globally.