Perplexity, the AI search engine startup, is making waves in the tech world. According to sources, the company is currently in the process of raising over $250 million at a valuation ranging between $2.5 billion and $3 billion.
This news follows two significant fundraising rounds in the past four months. In January, Perplexity secured nearly $74 million at a valuation of $540 million, which had surged from $121 million in April 2023. Additionally, at the beginning of March, the company closed funding at a valuation of $1 billion, amounting to $62.7 million.
Sources close to the company reveal that it is now seeking another substantial round of funding to capitalize on its growing market traction. Previous investors such as NEA and IVP are reportedly interested in participating in this new round.
Perplexity’s core product is a generative AI-based search engine, offering results through a chatbot-style interface. While the company faces competition in the generative AI sector, its unique approach incorporates various large language models (LLMs) to deliver more accurate and comprehensive responses.
Currently, Perplexity is expanding its offerings with a new enterprise “pro” product, incorporating advanced AI models like OpenAI GPT-4 and Anthropic Claude Opus. The company’s impressive investor list includes prominent VCs like Sequoia and Bessemer, as well as strategic backers like Nvidia and Databricks.
Despite its relatively short existence since 2022, Perplexity has garnered attention from industry heavyweights, boasting a lengthy list of investors and raising multiple rounds of funding in quick succession. This rapid fundraising pace mirrors trends seen in other AI startups, highlighting the growing significance of AI technologies in today’s market.
Perplexity’s focused approach on building AI services tailored for specific applications, such as search, distinguishes it from other startups in the AI landscape. As it continues to attract both customers and investors, Perplexity stands out as a promising player in the evolving AI sector.