Perplexity raises $200 million at $20 billion valuation

Perplexity, the AI-powered search startup positioning itself as a rival to Google, has secured $200 million in fresh funding at a $20 billion valuation, according to The Information. The new round comes just two months after the company raised $100 million at an $18 billion valuation, per a July Bloomberg report.

Since launching three years ago, Perplexity has grown at breakneck speed, attracting $1.5 billion in total funding, according to PitchBook. Details of the latest investors remain unclear, though Bloomberg previously reported that the July financing extended a $500 million round led by Accel earlier this year at a $14 billion valuation.

Rapid Growth in Revenue

Perplexity’s business momentum appears to be keeping pace with its fundraising. A source familiar with the company said its annual recurring revenue (ARR) is nearing $200 million. Just last month, Perplexity’s head of communication told Business Insider that ARR had already surpassed $150 million.

The company did not immediately respond to a request for comment on the latest funding.

Taking Aim at Google’s Search Stronghold

The capital infusion underscores Perplexity’s ambition to challenge Google’s dominance in search. Unlike traditional engines, Perplexity provides conversational, AI-driven answers to user queries, a model increasingly seen as the future of search.

In August, the startup made headlines with a $34.5 billion bid to acquire Google’s Chrome browser. The offer followed the U.S. Justice Department’s proposal that Google divest Chrome over antitrust concerns. That effort fell short, however, after a federal judge ruled earlier this month that Google would not be required to break up its search business, leaving Chrome under its control.

What’s Next for Perplexity

With new capital and surging revenue, Perplexity is cementing itself as one of the most formidable players in the AI search space. Whether it can meaningfully chip away at Google’s market share remains an open question, but its rapid rise—and willingness to take bold swings—signals that the battle for the future of search is far from settled.