Perplexity AI In Talks To Raise $500 Million, Aiming For $8 Billion Valuation

Perplexity AI, a fast-growing artificial intelligence startup backed by Jeff Bezos and Nvidia, has entered discussions to raise around $500 million in new funding, potentially more than doubling its valuation to over $8 billion, according to a report by the Wall Street Journal.

Perplexity didn’t initiate this latest round of funding; instead, investors approached the company, reflecting the high demand in the AI sector. Alongside its core search product, the startup offers various services, including tools for organizations to search internal files and features that cater to finance-related queries, such as stock prices and earnings data. The fundraising, if successful, would increase Perplexity’s value from previous estimates. The startup's estimated annual revenue currently sits at around $50 million, based on recent sales

The discussions are still in the preliminary stages, and details such as the valuation or the fundraising amount could change. Perplexity, however, has declined to comment on the matter.

Perplexity AI offers advanced search tools powered by large language models (LLMs) such as OpenAI and Meta's Llama. The platform provides users with instant answers to questions, complete with citations from reliable sources.

However, the company has faced legal challenges from media outlets. In October, Perplexity AI received a "cease and desist" notice from the New York Times, accusing the startup of using its content for AI generation without permission. The company has also been accused of plagiarism by outlets like Forbes and Wired, leading it to implement a revenue-sharing program with publishers to address some concerns.