By Asmita - May 13, 2025
Perplexity AI is in talks to raise $500 million in funding, with a valuation of $14 billion. The company, a key player in the generative AI space, offers conversational AI-powered search tools and has experienced rapid growth with over 15 million monthly users. Despite a lower funding amount than initially sought for, the valuation surge positions Perplexity as a leading AI startup globally as it expands its offerings and capabilities in the evolving AI search market.
A robotic hand holds a glowing light bulb above a city skyline, symbolizing innovation and AI technology via Pixabay
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Perplexity AI, an artificial intelligence search engine startup, is in advanced talks to raise $500 million in a funding round that would value the company at $14 billion. This round is expected to be led by Accel, a prominent venture capital firm, and follows a period of rapid growth for the company. Perplexity’s valuation has surged from $9 billion in December 2024, reflecting strong investor interest in AI-powered search tools that provide summarized, conversational answers rather than traditional lists of links.
Founded in 2022, Perplexity has quickly become a key player in the generative AI space, competing directly with tech giants like Google and Microsoft-backed OpenAI. Its flagship product leverages large language models to answer user queries in natural language, and the company now boasts over 15 million monthly users. Revenue has also grown rapidly, with annual recurring revenue reportedly reaching $120 million, up from nearly $100 million just a few months prior.
The new funding round, while substantial, is on the lower end of Perplexity’s earlier ambitions. In March, the company was reported to be seeking between $500 million and $1 billion at an $18 billion valuation, but the current negotiations reflect a more conservative target. Despite this, the $14 billion valuation still marks a significant leap and positions Perplexity as one of the most valuable AI startups globally. The company has also expanded its offerings, including plans to launch an AI-powered browser called Comet, aiming to challenge Google’s Chrome with more personalized, task-oriented features.
Perplexity’s momentum is further fueled by potential partnerships and integrations. Apple is reportedly considering adding Perplexity’s AI search features to its Safari browser, which could dramatically increase the startup’s reach. Meanwhile, the competitive landscape is intensifying, with OpenAI and Google both rolling out enhanced AI search capabilities. Perplexity continues to innovate, introducing developer tools like Sonar and expanding into enterprise solutions, as it seeks to solidify its position in the evolving AI search market.
