Perplexity AI, a company developing AI-driven search tools, is in preliminary discussions to secure a funding round that could potentially value the business at approximately $9bn,  The Wall Street Journal reported.

This valuation will be an increase from the $3bn valuation after an earlier round of investment in 2024.

The company is aiming to raise in excess of $500m.

These talks are said to be at an initial stage, and as such, the final terms may be subject to change, or the negotiations could potentially dissolve.

The startup’s valuation escalated from $1bn in April to the current figures under discussion.

This surge in value is reported to be not unique to Perplexity, as competitors such as OpenAI recently secured a substantial $6.6bn in financing, reaching a $157bn valuation.

Interest from investors has spurred the latest funding conversations, with Perplexity not actively seeking fresh capital.

The company’s offerings extend beyond its search tool, which is available in both paid and free versions.

It has launched a new product enabling the simultaneous search of internal documents and the internet, and has enhanced its finance-related search capabilities, including access to stock prices and company earnings information.

Despite facing plagiarism claims from certain news organisations, Perplexity has forged revenue-sharing partnerships with key publishers.

Its investor base includes prominent names such as SoftBank Group‘s Vision Fund 2, Amazon founder Jeff Bezos, and NVIDIA.

In January 2024, the company secured $73.6m in its Series B funding round spearheaded by IVP, with participation from the company’s existing backers including Elad Gil, NEA, Nat Friedman, and Databricks.