AI-powered search startup Perplexity is reportedly in early talks to raise up to $1 billion in fresh funding, a move that could push its valuation to a staggering $18 billion.
According to a report from Bloomberg, which cited a source familiar with the discussions, the funding round would mark a huge leap for the fast-growing company. Perplexity’s annual recurring revenue (ARR) has already hit $100 million, underscoring its rapid rise in the increasingly competitive AI search sector.
If finalized, this new valuation would double Perplexity’s worth from just a few months ago. Back in December, the company was valued at $9 billion. To put its growth in perspective, Perplexity was valued at just $1 billion in April 2024 — showing how fast investor confidence has soared.
The rumored funding round surfaces as the battle for dominance in AI-powered search continues to intensify. Just this week, Anthropic added web search capabilities to its chatbot Claude, while Google unveiled an early version of AI Mode, its chat-based search engine, to a limited group of testers.
Facing mounting competition, Perplexity seems determined to stay ahead by branching out into new areas. The company recently teased an upcoming “agentic” browser named Comet, which is expected to offer more autonomous search experiences. Additionally, Perplexity has expanded its enterprise tools, rolling out an AI-powered search engine designed to help businesses retrieve information buried in internal documents, a move aimed at capturing a share of the growing AI-for-enterprise market.
Perplexity has not yet commented publicly on the fundraising rumors. However, with the AI search space heating up, this funding round, if it materializes could signal the startup’s bold move to secure its position among the industry’s heavyweights.
