Perplexity AI Eyes $18 Billion Valuation as It Looks to Raise New Funds

Perplexity AI is making big waves in the tech world. The startup, known for its AI-driven search engine, is in early talks to raise between $500 million and $1 billion in a new funding round. If successful, this could push the company’s valuation to an impressive $18 billion — more than double its current worth.

Founded in 2022, Perplexity has quickly made a name for itself by offering a unique search tool powered by generative AI. The company’s success is evident in its rapid growth — it tripled its valuation from $1 billion to $3 billion last year and then did it again within just a few months. The AI space is attracting massive investor interest, and Perplexity is catching the eye of major players. As Bloomberg reports, the company’s annual recurring revenue is currently nearing $100 million, with over 15 million active users as of March 2025.

But the road ahead won’t be easy. Bloomberg reports that Perplexity's core search business faces stiff competition from industry giants like Google and OpenAI. In fact, OpenAI recently rolled out a search feature for all ChatGPT users, ramping up the competition in a space that Perplexity is trying to dominate. Still, Perplexity remains confident in its ability to carve out a niche, offering not only its search tool but also additional services like internal file search for businesses and finance-related features such as stock prices and company earnings.

Perplexity's rapid rise has been helped by significant backing from tech giants such as Nvidia, SoftBank’s Vision Fund 2, and Amazon’s Jeff Bezos. However, the new funding round is still in its early stages, and it remains to be seen which investors will get involved. While Perplexity has received offers at a $15 billion valuation, the latest talks suggest it could soon reach even greater heights.

In an era dominated by AI innovations, Perplexity is positioning itself as a strong contender in the search engine space, and with its growing revenue and user base, it’s clear that this startup has big plans for the future. Keep an eye on this company as it continues to challenge the giants and redefine how we use AI-powered search tools.