Perplexity AI Seeks Major Funding at $18 Billion Valuation

Nvidia-Backed Startup Aims to Capitalize on Surging Demand for AI Search Tools

Perplexity AI is reportedly in discussions to raise funds at an impressive valuation of $18 billion, as reported by Reuters on Thursday. The Nvidia-backed AI startup is looking to leverage its technology to meet the increasing demand for advanced search tools.

This new valuation marks a significant increase, doubling its previous figure of $9 billion, which was disclosed by Reuters in November of the prior year.

Innovative Technology and Support from Industry Giants

Perplexity AI specializes in providing information through internet searches, similar to solutions offered by ChatGPT and Google’s Gemini. Importantly, the startup is backed by influential investors including Amazon.com founder Jeff Bezos and Japan’s SoftBank Group.

The company is reportedly considering raising between $500 million to $1 billion in its current funding round, as noted by sources familiar with the matter.

Investor Enthusiasm Fueled by AI Adoption

The growing acceptance of chatbots and AI agents—capable of executing tasks on behalf of users—has significantly heightened investor interest in startups like Perplexity AI.

In order to compete effectively with established players like Google’s Gemini and Microsoft-backed OpenAI’s ChatGPT, the AI startup has been actively upgrading its platform’s features.

Introducing Comet: A Next-Generation Web Browser

Recently, Perplexity teased an innovative web browser named Comet. This new technology not only retrieves information but is also designed to comprehend complex queries, execute tasks, and even make informed decisions.

A key feature of Comet is its “Deep Research” capability, which can carry out extensive research by conducting numerous searches and reviewing hundreds of sources to deliver detailed reports.

Addressing Concerns and Controversies

Despite its potential, Perplexity has faced backlash from various media organizations—including those owned by News Corp, Forbes, and Wired—accusing the startup of plagiarism and content duplication. In response, the company has launched a publisher partnership program aimed at collaborating with news organizations.

Bloomberg News was the first to report on Perplexity AI’s increased valuation, highlighting the startup’s strategies to secure its position in the competitive search engine market.

Competition in the Search Engine Space

As one of the leading firms challenging major incumbents in the search engine landscape, Perplexity AI is poised to be a formidable competitor against giants like Alphabet’s Google.

In contrast, OpenAI recently concluded a $6.6 billion funding round in October, potentially valuing itself at an astounding $157 billion and solidifying its status as one of the most valuable private companies globally.

Conclusion

With its sights set on significant funding and ongoing innovation, Perplexity AI’s future appears promising as it navigates the evolving landscape of AI-powered search technologies. Its ability to cater to rising demands and address ongoing challenges will be critical to its success moving forward.