Perplexity AI nears $500M raise at $14B valuation
Perplexity AI, a rising player in the competitive artificial intelligence search space, is in late-stage discussions to secure $500 million in funding at a $14 billion valuation, according to a source familiar with the matter. The round will be led by Accel, a prominent Silicon Valley venture capital firm, though final details have yet to be confirmed.
The funding talks mark a significant moment for the company as it continues to scale amid intensifying competition. Although the $14 billion valuation falls short of the $18 billion figure considered during earlier discussions in March, the round still represents a substantial leap from its $9 billion valuation in December—and a dramatic rise from $3 billion just six months prior.
Perplexity’s rapid valuation growth is fueled by its position in the booming generative AI sector. Founded as an AI-powered search engine, it aims to challenge tech giants like Google, Microsoft, and OpenAI by offering real-time, natural language-driven search experiences. The company is currently generating just under $100 million in annual recurring revenue (ARR), according to internal sources.
The firm is also banking on the success of Comet, its upcoming AI-powered web browser agent, designed to push the boundaries of conversational search and user interaction online. However, the road ahead is competitive. Since March, rival AI firm Anthropic—backed by Amazon and now valued at $61.5 billion—launched a web search feature within its Claude chatbot. OpenAI, supported by Microsoft, has also expanded its search capabilities within ChatGPT, while Google continues refining its AI Overviews feature despite early criticism over inaccuracies.
As the generative AI landscape evolves rapidly, Perplexity’s latest funding round underscores investor confidence in alternative search technologies. But it also highlights the escalating arms race in a sector where product innovation, speed to market, and user trust will define the winners.
