Perplexity AI Inc., an artificial intelligence startup developing a search engine to take on Google, is in early talks with investors to raise capital at a $9 billion valuation, according to a source familiar with the situation.
The insider, who wished to remain anonymous while discussing personal matters, stated that the corporation is looking to raise over $500 million in the investment round.
The company may increase its prior valuation of $3 billion from a capital round earlier this year, which includes the money the company would raise. It’s very early in the talks, so things might change or the conversation could break down. The business refused to comment.
The recent surge in Perplexity’s valuation is indicative of the keen interest of venture capitalists in supporting AI startups. As late as April of this year, the business had a $1 billion valuation. Large sums have also been raised by its competitors and colleagues, such as OpenAI, which earlier this month closed a $6.6 billion financing round at a valuation of $157 billion.
The source claimed that Perplexity’s most recent finance discussions happened as a result of investors reaching out to the business, not because the startup was looking to acquire further funds.
Apart from the commercial and free versions of its search tool, Perplexity provides various other services. It recently unveiled additional tools for searches connected to finance, such as stock prices and firm earnings data, and released a platform that enables businesses to search internal information in addition to the internet.
In addition, the business has started a number of revenue-sharing agreements with large publishers, while being accused of plagiarism by certain news organizations.
Among the company’s investors are Nvidia Corp. and Jeff Bezos, the founder of Amazon.com Inc. and a partner of SoftBank Group Corp.