(Bloomberg) — Perplexity AI Inc., an artificial intelligence company developing search products aimed at competing with Google, is in early talks to raise funding from investors at a valuation of about $9 billion, according to people familiar with the matter. It is said that they are doing this.
Most Read Articles on Bloomberg
The company aims to raise more than $500 million in this round, said the people, who asked not to be identified.
The new valuation, including the amount the company raises, could triple its previous value of $3 billion from a funding round earlier this year. However, talks are still at an early stage and details may change or the talks may break down. The company declined to comment.
Perplexity’s valuation has soared in recent months, reflecting venture capitalists’ strong interest in backing AI companies. As of April this year, the startup was valued at just $1 billion. Peers and rivals have also raised significant amounts of funding, including OpenAI, which closed on a $6.6 billion round earlier this month at a valuation of $157 billion.
Perplexity’s recent funding talks came about after investors approached the company, and not because the startup was looking to raise new funding, the people said.
Perplexity offers several services in addition to paid and free versions of its search tools. The company recently launched a product that allows organizations to search internal files at the same time as the internet, and introduced new features for financial-related searches such as stock prices and corporate earnings data.
The company has also launched a series of revenue-sharing partnerships with major publishers, even as it faces accusations of plagiarism from some news outlets.
Investors in the company include SoftBank Group’s Vision Fund 2, Amazon.com founder Jeff Bezos, and Nvidia.
The Wall Street Journal earlier reported on the deal negotiations.
Most Read Articles on Bloomberg Businessweek
©2024 Bloomberg LP
