Money-hungry AI search startup Perplexity in talks to raise up to $1B in fresh funding - SiliconANGLE
Mar 21, 2025 - siliconangle.com
Perplexity AI Inc., an AI search application company, is reportedly in talks to raise between $500 million and $1 billion, potentially increasing its valuation to $18 billion. This follows a $500 million raise last December, which tripled its valuation to $9 billion. The company, which competes with Google, Microsoft, and OpenAI's ChatGPT, has grown its annual recurring revenue to just under $100 million. Despite facing increased competition, Perplexity is expanding its offerings, including a $50 million venture fund for early-stage AI startups and the upcoming AI-powered Comet browser. Additionally, it has introduced a revenue-sharing model for publishers to address plagiarism accusations.
Perplexity has more than 15 million active users and offers a premium subscription for advanced search capabilities. The company is also exploring a merger with ByteDance's TikTok to navigate potential U.S. regulatory challenges. As it continues to innovate and expand, Perplexity aims to maintain its competitive edge in the rapidly evolving AI search industry.
Key takeaways:
Perplexity AI Inc. is in talks to raise between $500 million and $1 billion, potentially boosting its valuation to $18 billion.
The company has grown its annual recurring revenue to just under $100 million amid increased competition from rivals like Google and OpenAI.
Perplexity has launched a $50 million venture fund to invest in early-stage AI startups and introduced a Sonar API to embed its AI search features into other applications.
To address plagiarism accusations, Perplexity implemented a revenue-sharing model for publishers and offers a premium subscription for advanced search capabilities.
