AI startup Perplexity AI is in negotiations to raise between $500m and $1bn at a valuation of approximately $18bn, reported Reuters citing a source familiar with the situation.
The AI startup, known for its advanced search tools and backed by Amazon founder Jeff Bezos and SoftBank Group, aims to capitalise on the increasing demand for its products.
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The proposed valuation marks a substantial increase from the $9bn valuation reported in November 2024, effectively doubling the startup’s worth.
Perplexity AI’s platform has been undergoing enhancements to remain competitive with similar offerings like Google’s Gemini and OpenAI’s ChatGPT, which is supported by Microsoft.
Recently, Perplexity AI unveiled Comet, a new web browser that leverages AI to process complex queries, perform tasks, and make decisions, going beyond mere information retrieval.
The startup’s Deep Research feature is designed to conduct thorough investigations, synthesising information from numerous searches and hundreds of sources to produce detailed reports.
In April 2024, Perplexity was valued at $1bn, and by June, it had risen to $3bn following an investment from SoftBank Group’s Vision Fund 2.
Perplexity, founded in 2022, provides real-time information and offers both paid and free versions of its search tool.
The company has introduced several new services, including a product for searching internal files and finance-related features such as stock prices and company earnings data.
