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Perplexity AI's value to soar to $9B as it finalizes new $500M funding round - SiliconANGLE

Nov 06, 2024 - siliconangle.com
Generative AI search startup Perplexity AI Inc. is finalizing a new funding round that will raise its valuation to $9 billion, with $500 million in funding led by Institutional Venture Partners. The company, which competes with Google Search and OpenAI’s ChatGPT, has seen its valuation rise from $520 million at the start of the year to $3 billion in June, making it one of the most valuable generative AI startups globally. Despite competition, Perplexity's search app has been downloaded over 2 million times, handling about 230 million search queries each month.

However, Perplexity has faced controversy, with media outlets accusing it of plagiarizing their content. The New York Times, Forbes, and Wired.com have all accused the company of scraping their web articles, with Dow Jones even suing the company. In response, Perplexity has proposed a revenue-sharing model for publishers, promising to share ad revenue generated from responses citing their articles. This initiative has been accepted by several publishers, including Fortune, Time, and Entrepreneur.

Key takeaways:

  • Generative AI search startup Perplexity AI Inc. is finalizing a new funding round that would increase its valuation to $9 billion, with $500 million set to be received in the round.
  • The startup's search app has been downloaded more than 2 million times and handles about 230 million search queries each month.
  • Perplexity has faced controversy with media outlets accusing it of plagiarizing their content, leading to the startup offering a revenue-sharing model for publishers.
  • Several publishers, including Fortune, Time, Entrepreneur, The Texas Tribune, Der Spiegel and WordPress, have signed up to the revenue-sharing program.
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