Perplexity was founded two years ago|Perplexity.ai
Perplexity, an AI search company backed by Jeff Bezos, is looking to raise $500 million in its new fundraising talks. The company aims to boost its valuation to over $8 billion.
It comes after a year of rapid growth, with its valuation rising from $520 million in January to $3 billion by summer. The startup had three funding rounds this year amid a surge in interest in generative AI.
Founded two years ago, Perplexity combines a search engine with an AI chatbot, delivering real-time answers and information like Google and ChatGPT.
The company currently processes about 15 million daily queries and earns revenue through premium subscriptions and a new enterprise version for corporate clients. It plans to diversify its income by selling advertisements soon.
However, it faces backlash from media outlets like The New York Times, which issued a “cease and desist” notice over content usage.
Perplexity is one of the startups competing in the generative AI market, currently dominated by ChatGPT-maker OpenAI. The Microsoft-backed startup recently closed a record-breaking VC funding round, raising $6.6 billion, valuing the company at $157 billion.
Several AI startups that show market traction are rapidly raising more funds at a higher valuation, underscoring investors’ interest.