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AI Search Startup Perplexity Valued at $1 Billion in Funding Round

Apr 23, 2024 - bloomberg.com
Perplexity AI, an AI startup that is building a search engine to rival Google, has raised $63 million in a new funding round, doubling its valuation to over $1 billion in just three months. The round was led by investor Daniel Gross, with participation from Stanley Druckenmiller, Y Combinator CEO Garry Tan, Figma Inc. CEO Dylan Field, Amazon.com Inc. founder Jeff Bezos, and Nvidia Corp. The company, which offers an AI chatbot that summarizes search results, has processed nearly 75 million user queries in the US this year and generates $20 million in annual recurring revenue.

The startup is now focusing on selling AI services to businesses and is launching a new enterprise version of its chatbot priced at $40 a month. It has also signed distribution partnerships with Japan’s SoftBank Corp. and Germany’s Deutsche Telekom AG to reach over 300 million users worldwide. Despite competing with larger companies like Google and OpenAI, Perplexity believes its strength lies in its nimbleness and focus on accuracy.

Key takeaways:

  • Perplexity AI, an AI startup that has developed a search engine to compete with Google, has raised $63 million in a new funding round, valuing the company at over $1 billion.
  • The company offers an AI chatbot that summarizes search results and helps users refine their queries. It has processed nearly 75 million user queries in the US this year and generates $20 million in annual recurring revenue.
  • Perplexity is launching a new enterprise version of its chatbot, priced at $40 a month, with added features including stronger security and data protection measures. Companies like Bridgewater Associates, Zoom Video Communications Inc., and the Cleveland Cavaliers are among the early users.
  • The startup has also signed distribution partnerships with SoftBank Corp. and Deutsche Telekom AG to market its service to over 300 million users worldwide. Some of these customers will be offered a free one-year subscription to Perplexity.
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