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Perplexity AI gets $500M in funding, immediately spends some of it to buy RAG startup Carbon - SiliconANGLE

Dec 19, 2024 - siliconangle.com
Perplexity AI Inc., an AI search engine company, has secured $500 million in funding, raising its valuation to $9 billion. The funding round, led by Institutional Venture Partners, follows Perplexity's acquisition of RAG startup Carbon, which specializes in connecting AI systems to external data sources. This acquisition aims to enhance Perplexity's premium features, allowing users to search through internal files and work messages. Founded in 2022, Perplexity differentiates itself by providing real-time information in a conversational manner, similar to ChatGPT, and faces competition from AI giants like OpenAI, Google, and Microsoft.

The acquisition of Carbon suggests Perplexity's intent to cater more to enterprise users by enabling efficient searches through unstructured internal data. Carbon's technology will be integrated into Perplexity's services early next year, with its four employees joining Perplexity. The move aligns with the growing interest in enterprise search, a field also being pursued by OpenAI and other major AI companies. Perplexity's focus on data connectivity and personalized AI experiences is highlighted by its CEO, Aravind Srinivason, as a key part of daily workflows.

Key takeaways:

  • Perplexity AI has secured $500 million in funding, raising its valuation to $9 billion, and has acquired the RAG startup Carbon to enhance its premium features.
  • The acquisition of Carbon will enable Perplexity to integrate retrieval-augmented generation technology, allowing users to search through internal files and work messages.
  • Perplexity aims to cater more to enterprise users by providing tools to search through unstructured internal data, enhancing workplace efficiency.
  • Perplexity faces competition from major players like OpenAI, Google, and Microsoft, who are also expanding their AI-powered search capabilities.
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