Perplexity AI Seeks $500 Million to $1 Billion Funding
Perplexity AI, an Nvidia-backed artificial intelligence startup supported by Amazon's Jeff Bezos and Japan's SoftBank Group, is negotiating to raise $500 million to $1 billion in a new fundraising round, Reuters reported. According to sources, the startup's valuation has doubled to $18 billion compared with the earlier $9 billion valuation Reuters had reported in November.
Expansion Plans and Rising Demand for AI-powered Search Tools
Perplexity AI, which competes with platforms like Google’s Gemini and OpenAI’s ChatGPT, has been expanding its AI search capabilities. The company provides information by searching the internet to transform how users interact with digital content. The startup’s rise comes amidst the growing popularity of AI agents, which offer advanced capabilities beyond traditional search engines, such as executing tasks and taking actions for users.
New Developments
To stay competitive, Perplexity AI has introduced new features to its platform. One of the newest additions is the release of the "Comet" web browser, which uses AI to gather information and understand complicated questions, make choices, and complete tasks. The company also rolled out a "Deep Research" feature, which can conduct heavy research, search various sources, and create in-depth reports.
Also read: Alphabet Resumes $30 Billion Acquisition Talks with Cybersecurity Firm Wiz
Aiming to Challenge the Search Engine Giants
Perplexity AI's push has made it one of the emerging threats to traditional search engine leaders like Google. While the company continues to advance its platform, it has been going through accusations from news outlets like Forbes and Wired, which have accused the startup of plagiarism. Perplexity has rolled out a publisher partnership program to address these concerns and collaborate with news organizations.
The ongoing funding discussions come on the heels of OpenAI's successful $6.6 billion funding round in October, positioning it as one of the most valuable private companies globally, valued at $157 billion.
