– Perplexity, an AI search engine startup, is currently raising at least $250 million more at a valuation of between $2.5 billion and $3 billion.
– The company has seen significant growth in fundraising, with two recent rounds in January and March, and is now looking to raise another round to capitalize on market attention.
– Perplexity’s core product is a generative AI-based search engine that incorporates various large language models to provide accurate and rich responses, standing out in the market for its focus on search.
Perplexity, an AI search engine startup, is currently raising at least $250 million more at a valuation of between $2.5 billion and $3 billion. The company has seen significant growth in fundraising in the last four months, with its valuation increasing from $540 million in January to $1 billion in March. The company is further raising funds to capitalize on the attention it is receiving in the market, with existing investors like NEA and IVP looking to participate.
Perplexity’s product is a generative AI-based search engine that provides results through a chatbot-style interface. The company is incorporating various language models to enhance the accuracy and richness of its responses, offering customers a range of options to customize their experience. Despite being a fairly new company, Perplexity has already attracted a long list of investors, including prominent VCs, strategic backers, and notable individuals.
The startup is distinguishing itself in the market by focusing on building generative AI services for search rather than multi-purpose large language models. By targeting the enterprise market with free and paid tiers, Perplexity has processed 75 million queries this year with an Annual Recurring Revenue (ARR) of $20 million. The rapid pace of fundraising is driven not only by customer and investor interest but also by the high cost of computing power required to build AI services.
Overall, Perplexity’s continued fundraising efforts reflect the growing interest in AI startups and the need to secure resources to support the development of innovative technologies in a competitive market.