Perplexity AI, an artificial intelligence startup focused on search tools, is in discussions to raise funding at an $18 billion valuation, according to sources close to the matter. This marks a significant increase from its previous valuation of $9 billion, reported in November. Backed by major investors, including Nvidia, Amazon founder Jeff Bezos, and Japan’s SoftBank Group, Perplexity aims to expand its capabilities and capitalize on the growing demand for AI-powered search tools.
The company is reportedly looking to raise between $500 million and $1 billion in this funding round, with heightened interest from investors in the rapidly growing AI sector. As chatbots and AI agents gain popularity, there is increasing enthusiasm for startups like Perplexity that are advancing AI technology. The company has been actively enhancing its platform to compete with giants such as Google’s Gemini and Microsoft-backed OpenAI’s ChatGPT.
Perplexity AI recently introduced a new web browser, Comet, which goes beyond basic information retrieval by utilizing AI to understand complex queries, perform tasks, and make decisions. Additionally, its Deep Research feature enables the platform to conduct extensive research by aggregating information from multiple sources, providing detailed reports for users.
Despite facing criticism from some media outlets, such as News Corp-owned publications, for alleged plagiarism and content copying, Perplexity continues to innovate and challenge incumbents like Google in the search engine market. The company also has a publisher partnership program to collaborate with news organizations, working to address these concerns.
source: Reuters