Perplexity AI in talks to raise funds at $24b valuation, source says

Perplexity AI in talks to raise funds at $24b valuation, source says

  • 20.03.2025 19:37
  • straitstimes.com
  • Keywords: AI

Perplexity AI is seeking funding at a $24 billion valuation, backed by investors like Jeff Bezos and SoftBank. The startup aims to compete with major players like Google and ChatGPT through innovative AI tools, despite facing criticism over content practices.

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Estimated market influence

Perplexity AI

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Analyst rating: N/A

The company has faced accusations from media organisations, such as News Corp-owned outlets, Forbes and Wired, that the startup engages in plagiarism and copying of its content.

Context

Analysis of Perplexity AI's Fundraising and Market Implications

Valuation and Funding

  • Valuation: Perplexity AI is in talks to raise funds at a $24 billion valuation, doubling its previous valuation of $9 billion reported in November 2023.
  • Funding Round: The company aims to raise between $500 million and $1 billion in the current round.

Backing and Support

  • Key Investors: Perplexity is backed by Amazon founder Jeff Bezos, Japan’s SoftBank Group, and NVIDIA.
  • Strategic Positioning: As an AI startup competing with major players like Google’s Gemini and Microsoft-backed ChatGPT, Perplexity aims to capture the growing demand for advanced search tools.

Product Developments

  • Comet Browser: Launched in February 2024, Comet is a web browser that uses AI to retrieve information, understand complex queries, execute tasks, and make decisions.
  • Deep Research Feature: Enables extensive research by conducting multiple searches and analyzing numerous sources to deliver comprehensive reports.

Competitive Landscape

  • Market Challenge: Perplexity is among the leading firms challenging incumbents like Google in the search engine market.
  • Investor Interest: The rise of AI agents and chatbots has increased investor enthusiasm for such startups, positioning Perplexity as a key player in the AI-driven search space.

Challenges and Considerations

  • Accusations of Plagiarism: Media organizations, including News Corp-owned outlets, have accused Perplexity of content copying. The company addresses this through its publisher partnership program.
  • Regulatory and Ethical Implications: Potential long-term effects include navigating accusations of intellectual property violations and maintaining trust with content creators.

Market Trends and Industry Impact

  • AI Adoption Surge: The growing adoption of AI chatbots and agents has fueled investor interest in Perplexity and similar startups.
  • Long-Term Effects: If successful, Perplexity could redefine the search engine landscape, potentially challenging established giants like Google and Microsoft’s OpenAI.

Strategic Considerations

  • Differentiation: Perplexity’s focus on advanced AI features like Comet and Deep Research aims to differentiate it from competitors.
  • Partnerships: Collaborations with news organizations through its publisher program could mitigate content-related risks and enhance credibility.

This analysis highlights Perplexity AI's strategic positioning, competitive strengths, and challenges in the rapidly evolving AI search market.