Perplexity AI in Talks to Raise $1 Billion, Doubling Valuation to $18 Billion

AI-powered search startup Perplexity is reportedly in early discussions to raise up to $1 billion in a new funding round, which would double its valuation to $18 billion. This significant growth comes amid increasing competition in the AI-driven search industry.

Perplexity’s Growth and Financial Performance

According to Bloomberg, citing a source familiar with the matter, Perplexity’s annual recurring revenue (ARR) has reached $100 million. The company’s valuation has skyrocketed over the past year—rising from $1 billion in April 2024 to $9 billion in December, and now potentially reaching $18 billion with this latest funding round.

Rising Competition in AI Search

The AI-powered search market is becoming increasingly competitive:

• Anthropic recently integrated web search into its AI chatbot, Claude.

• Google launched an early version of its AI-powered search engine, AI Mode, for limited testing earlier this month.

Perplexity’s Expansion Strategy

Amid this growing competition, Perplexity is expanding its focus beyond search. The company recently teased the launch of an “agentic” browser called Comet and is also ramping up its enterprise AI offerings, including an AI search engine designed to help businesses retrieve information from internal documents.

Awaiting Official Confirmation

While these funding discussions are ongoing, Perplexity has not yet confirmed the details. We have reached out to the company for comment and will update this report as new information emerges.