Perplexity AI is reportedly in early discussions to raise between $500 million to $1 billion, potentially doubling its valuation to $18 billion. This latest funding round would significantly increase the company's valuation from its $9 billion mark in December. Perplexity AI, an artificial intelligence search engine, competes against major players like Google and Microsoft-supported OpenAI (MSFT, Financial).
The company's annual recurring revenue (ARR) is slightly below $100 million, according to sources familiar with the matter. The potential valuation bump marks a substantial increase from its $3 billion valuation in June 2024, indicating rapid growth and investor interest in the AI sector.
Perplexity AI's competitive positioning in the AI market, alongside giants such as Microsoft (MSFT, Financial), underscores the growing demand and investment in AI-driven technologies as companies strive to enhance their capabilities and capture market share.
