Perplexity AI Targets $500M Funding Amid Rapid Growth

L-R: Johnny Ho, Aravind Srinivas, and Dennis Yarats (Perplexity co-founders)

California-based AI search engine startup Perplexity AI is reportedly set to raise $500 million, boosting its valuation to $8 billion. This marks a significant leap from its earlier $3 billion valuation achieved earlier this year, which followed investment from SoftBank. The company specializes in enhancing knowledge discovery with its AI-native search engine platform.

Earlier this year, Perplexity AI secured $73.6 million in Series B funding, valuing it at $520 million with investors including Jeff Bezos. Later, a separate $62.7 million round propelled its valuation to $1.04 billion, earning it unicorn status in the generative AI sector.

This new funding announcement comes shortly after OpenAI's massive $6.6 billion funding at a $157 billion valuation, highlighting the growing investment in AI-driven technologies.

Founded in 2022 by former Google engineers Arvind Srinivas, Dennis Yarats, Johnny Ho, and Andy Konwinski, Perplexity AI offers a unique chatbot-like interface that allows users to ask questions in natural language. Designed to challenge Google’s search dominance, it uses generative AI to deliver concise, sourced responses, allowing for deeper follow-up inquiries.

Source: Abhinaya Prabhu / Tech Funding News